Prosecutors Allege Insider Trading Involving Former Bank of America IT Worker
August 16 2017 - 5:08PM
Dow Jones News
By Dave Michaels
WASHINGTON -- Prosecutors have filed criminal charges against
several people in an insider-trading scheme in which a former Bank
of America employee is alleged to have tipped several friends about
pending corporate mergers.
Daniel Rivas, a former information technology worker in Bank of
America's investment banking group, passed confidential information
about potential deals to friends including his girlfriend's father,
who was an executive at a global interdealer brokerage firm,
according to an indictment made public Wednesday. The group of
individuals who traded on the information earned over $5 million by
trading in more than two dozen stocks, according to the
indictment.
As an information-technology worker at the bank, Mr. Rivas had
access to a database of potential deals that contained nonpublic
information, the indictment said. A spokesman for Bank of America
said Mr. Rivas was fired in April. The bank cooperated fully with
the government's investigation, the spokesman said.
An attorney for Mr. Rivas didn't immediately return a call
seeking comment.
Write to Dave Michaels at dave.michaels@wsj.com
(END) Dow Jones Newswires
August 16, 2017 16:53 ET (20:53 GMT)
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