Next Monday, ex-Perella Weinberg employee Sean Stewart will go on trial on insider trading charges, and regardless of the outcome, the whole thing will make a pretty, pretty, pretty awkward story for the Summer/Fall edition of the Stewart Family Newsletter.
According to prosecutors, Sean tipped his father to five health-care mergers from 2011 to 2014 while he worked as an investment banker at JPMorgan Chase & Co. and Perella Weinberg. In exchange, they say, Bob paid $10,000 for a photographer at Sean’s wedding and gave his son an additional $15,000. The father shared tips with a friend, Dick Cunniffe, and the two reaped more than $1 million trading on the leaks, prosecutors said. Of that amount, Bob got about $100,000, his lawyers said. Cunniffe was caught, pleaded guilty and agreed to cooperate with the Federal Bureau of Investigation in a bid for leniency. Cunniffe began secretly recording the older Stewart. In one conversation, at Andrew’s Coffee Shop in midtown Manhattan, Bob allegedly told Cunniffe that his son had scolded him for failing to trade on a tip. “I can’t believe it,” Bob quoted Sean as saying, according to prosecutors. “I handed you this on a silver platter and you didn’t invest.” Bob Stewart pleaded guilty just three months after his arrest.
Way harsh, son! But according to the younger Stewart's court-appointed lawyers, Stewart the Elder stuck his nose where it didn't belong unbeknownst to Sean.
It’s unclear whether prosecutors will focus on the family relationship. But Sean might do so as part of his claim that his father learned what he was doing at work and then used the information to trade, according to the person, who declined to publicly discuss details of the case...The defense may highlight another recorded meeting between Cunniffe and the older Stewart in which Bob said he never told Sean he had used the information.