David J. Weishaus, Insider Trading, New York 2012
A former stock broker has been caught up in an insider trading scheme that netted him a profit of around $1 million.
David J. Weishaus, 33, of New York, New York, pled guilty to one count of conspiracy to commit securities fraud and one count of securities fraud in Manhattan federal court on April 25, 2014. He was charged in November 2012.
According to the indictment, Weishaus received non-public information about IBM's acquisition of SPSS, Inc. in 2009 from his co-worker, Thomas Conradt. The information was used to buy SPSS common stock and call options, which rose by 41% in one day when IBM announced the acquisition on July 28, 2009.
Weishaus and his co-workers, including CC-1 and CC-2, made a total profit of around $1 million from the scheme.
As part of his plea agreement, Weishaus agreed to forfeit his share of the proceeds from the offense.
U.S. Attorney Preet Bharara praised the investigative work of the Federal Bureau of Investigation and thanked the U.S. Securities and Exchange Commission for their assistance in the case.
The case was brought in coordination with President Barack Obama's Financial Fraud Enforcement Task Force, on which Bharara serves as a Co-Chair of the Securities and Commodities Fraud Working Group.
Key Facts
- State: New York
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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