Yesterday, attorneys at the Securities and Exchange Commission (“SEC”) filed a complaint in the Southern District of New York alleging claims of insider trading against a former proprietary trader at a New York broker-dealer, Spectrum Trading, LLC. According to the complaint,
In this scheme, … former lawyers in the New York office of Ropes & Gray, misappropriated from their law firm, in exchange for kickbacks, material, nonpublic information concerning corporate acquisitions or bids involving Ropes & Gray clients, including the September 2007 announced acquisitions of 3Com by Bain Capital and Huawei Technologies.
The trader allegedly received total illicit profits from this scheme totaling approximately $207,000.
For more information see the complaint here.