Dov Malnik, Insider Trading, New York 2021

Israeli Securities Trader Pleads Guilty to Insider Trading

A former Israeli securities trader, Dov Malnik, pleaded guilty to participating in a global insider trading ring that made millions of dollars in illicit profits by trading based on misappropriated inside information.

According to the unsealed indictment, Malnik was part of a large-scale, international insider trading ring that operated from at least 2013 through 2017. He and his business partner, Tomer Feingold, received material, nonpublic information (MNPI) concerning acquisitions and potential acquisitions of publicly traded companies from a securities trader who resided in Switzerland (CC-1).

Malnik and Feingold used this information to place timely, profitable securities trades, resulting in millions of dollars of profits. They also took steps to conceal their unlawful enterprise, including through the use of encrypted messaging applications and multiple unregistered ‘burner’ phones.

Malnik, a citizen of Israel and Lithuania, was arrested in Switzerland on October 7, 2020, and was extradited to the United States on June 10, 2021. He pleaded guilty to the charges before U.S. Magistrate Judge Stewart D. Aaron.

The case is assigned to U.S. District Judge Victor Marrero. The indictment charges Malnik with 15 counts, including conspiracy to commit securities fraud, securities fraud, and wire fraud.

Manhattan U.S. Attorney Audrey Strauss said, ‘Today’s charges represent another step in our Office’s pursuit of transnational insider trading. Our Office, along with the FBI and our other law enforcement partners, will vigorously protect the integrity of our nation’s capital markets, regardless of where in the world the inside information is stolen and where tips are illegally passed.’

FBI Assistant Director William F. Sweeney Jr. added, ‘Whether it happens inside or outside our borders, trading securities based on misappropriated insider information that affects our financial markets in any way will ultimately lead to federal criminal charges here in the U.S. Protecting the integrity of our markets from threats both at home and abroad remains a top priority of our white collar crime division.’