Amit Kanodia Convicted in $1M Insider Trading Scheme

Amit Kanodia, 49, of Brookline, was found guilty by a federal jury in Boston after a six-day trial on charges tied to a $1 million insider trading scheme that ripped through the stock market in 2013. Kanodia was convicted of one count of conspiracy and 10 counts of securities fraud, each linked to illegal trades made by his co-conspirators, Iftikar Ahmed and Steven Watson, on Cooper Tire & Rubber Company stock.

The scheme began in the spring of 2013 when Kanodia, armed with confidential information, tipped off Ahmed and Watson about a pending acquisition of Cooper Tire by India-based Apollo Tyres. The information came straight from the top: Kanodia’s wife was General Counsel at Apollo at the time. The tip wasn’t casual conversation—it was a calculated move to exploit non-public knowledge for cold, hard profit.

Armed with the inside scoop, Ahmed and Watson began aggressively buying shares and options in Cooper Tire, which trades on the New York Stock Exchange. When the acquisition was made public, the stock price exploded—jumping 41% in a single day. The pair dumped their holdings immediately, pocketing more than $1 million in illegal profits. Kanodia wasn’t left out—he received a cut of the illicit gains, sealing his role as the source at the center of the ring.

The jury acquitted Kanodia on eight additional counts of securities fraud related to other trades, but the conviction on 11 counts leaves him facing serious prison time. Each securities fraud count carries a maximum sentence of 20 years, $5 million in fines, and five years of supervised release. The conspiracy charge allows for up to five years behind bars, three years supervised release, and a fine of $250,000 or double the profit—whichever is higher.

U.S. District Court Judge Nathaniel G. Gorton has scheduled sentencing for Jan. 18, 2017, at 3 p.m. Meanwhile, co-conspirator Iftikar Ahmed remains a fugitive, evading justice entirely. Steven Watson, who has already pleaded guilty, is set to be sentenced in November and may provide further details under cooperation agreements.

The case was prosecuted by Assistant U.S. Attorneys Sarah E. Walters, Chief of the Economic Crimes Unit, and Brian Perez-Daple, under the direction of former U.S. Attorney Carmen M. Ortiz and FBI Special Agent in Charge Harold H. Shaw. The Securities & Exchange Commission provided critical support, underscoring the federal machine’s reach into high-level financial corruption. This wasn’t a victimless crime—it undermined market integrity and lined pockets with insider secrets.