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.")