Ex-Perella Weinberg Banker Says His Father Is A Great Guy Who Just Stole Inside Information From Him And Traded On It

You know how it is.
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Last week, we discussed the uber awkwardness of the Sean Stewart insider trading trial currently underway, wherein Sean has claimed he had no role in passing tips from his job to his father Robert, who then traded on them with a buddy named Richard Cunniffe. Making things look not totally great for Sean are that 1) Father Stewart and Cunniffe have already pleaded guilty and 2) Stewart the Elder can be heard on tape telling Cunniffe about Sean reaming him out one day for not trading on a particular piece of information (Cunniffe was wearing a wire at the time, natch). Since all of the material non-public information Daddy Stewart and Cunniffe used to score ill-gotten gains can be traced back to deals going down at Sean's job, he doesn't have too many ways to argue his innocence except to say that his father used info Sean told him in confidence in the course of some "Hey, son, how's work going" conversations.

Sean Stewart, an ex-banker at Perella Weinberg Partners and JPMorgan Chase & Co(JPM.N), took the stand in his own defense and told jurors in federal court in Manhattan that he had a great relationship with his father but never intended to help him profit through insider trading. "I never gave my father information so he could trade on it," Stewart testified...Lawyers for Sean Stewart contend their client was unaware of the insider trading scheme. They contend the banker's father betrayed his son to execute trades based on company names his son mentioned while discussing his work.

(Sean's lawyer previously went with the slightly harsher, less fit for a cross-stitch description of Bob as being "weak and foolish and selfish.")

Ex-Wall Street banker says he did not give insider tips to father [Reuters]

Earlier: Dad Of Son On Trial For Insider Trading Receives Worst Late Father’s Day Card Ever

Related

Rajat Gupta Defense Team: You Think Our Client Would Pass Inside Information To A Guy Who Didn't Even Have The Decency To Invite Him To His Birthday Party?

What motivates people to share material non-public information with a person they know will use it for profit? For some, it's simply about greed. For others, it's about the thrill. For yet others, it's about pillow talk. For Rajat Gupta, the McKinsey director currently on trial for allegedly passing inside information to Raj Rajaratnam, it's about friendship, according to prosecutors who are trying to make the case that Raj and Rajat were the best of buds and that's what buds do. They they back each other up when they drunkenly hit on the girlfriend of the wrong guy at the bar, they stand up as best men at each others' weddings, they pick up the phone and say "Buy GS" when they know for a fact Warren Buffett is about to do so, too. And although attorneys representing Gupta don't deny the two were thick as thieves, they argue that while perhaps back in the day Rajat would have provided useful information to Raj, there is no way he would have done so after Big R twice violated the bonds of friendship. In the first instance, there was this: Defense attorneys have argued that Messrs. Gupta and Rajaratnam had a falling out in fall 2008 after Mr. Gupta lost his entire $10 million investment in a fund managed by Mr. Rajaratnam and therefore wouldn't have passed along inside information...The precise timing of their relationship's deterioration could be crucial in proving Mr. Gupta's guilt or raising doubts in the minds of jurors about whether he conspired to commit securities fraud...Defense attorneys have said Mr. Gupta was furious at Mr. Rajaratnam in the fall of 2008, when Mr. Gupta's $10 million investment in a fund called Voyager Capital Partners Ltd. evaporated. According to Mr. Kumar's testimony, Mr. Gupta felt Mr. Rajaratnam's negligence had allowed Voyager to collapse. And then this happened: