Sean Stewart Found Guilty of Insider Trading
On August 17, 2016, a jury in federal court in Manhattan returned a guilty verdict on all nine counts against former investment banker Sean Stewart in a criminal trial prosecuted by the U.S. Attorney’s Office for the Southern District of New York. The jury convicted Sean Stewart of insider trading and related charges. He is presently scheduled to be sentenced on February 17, 2017.
On May 14, 2015, the SEC charged Sean Stewart with insider trading, and the criminal case is based on similar conduct underlying the SEC’s action. The SEC’s complaint alleges that, in a scheme spanning at least four years, Stewart illegally tipped his father, Robert Stewart, about future mergers and acquisitions involving clients of two investment banks where Sean worked. The complaint alleges that his father, a certified public accountant, cashed in on the tips by placing and directing highly profitable securities trades ahead of the public announcement of these corporate transactions, generating approximately $1.1 million in illicit proceeds. On August 12, 2015, Robert Stewart pled guilty to conspiracy to commit securities fraud.
The SEC’s action, which remains pending, seeks an injunction against Sean and Robert Stewart from further violations of the charged provisions of the federal securities laws, disgorgement of ill-gotten gains, civil penalties, and an officer and director bar against Robert Stewart.
For further information about this securities law blog post, please contact Brenda Hamilton, Securities Attorney at 101 Plaza Real S, Suite 202 N, Boca Raton, Florida, (561) 416-8956, by email at [email protected] or visit www.securitieslawyer101.com. This securities law blog post is provided as a general informational service to clients and friends of Hamilton & Associates Law Group and should not be construed as, and does not constitute, legal and compliance advice on any specific matter, nor does this message create an attorney-client relationship. Please note that the prior results discussed herein do not guarantee similar outcomes.
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Brenda Hamilton, Securities Attorney
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