Ex-TIAA-CREF Insider Billimek Sentenced to 70 Months for Insider Trading

Ex-TIAA-CREF Insider Billimek Sentenced to 70 Months for Insider Trading

A federal judge has handed down a 70-month prison sentence to Lawrence Billimek, a former insider at financial services giant TIAA-CREF, for his role in a multi-year insider trading scheme that raked in tens of millions of dollars in illicit gains.

Lawrence Billimek, 52, of Hailey, Idaho, was sentenced by U.S. District Judge Paul G. Gardephe after previously pleading guilty to one count of securities fraud. Billimek’s scheme, which spanned from at least 2016 to December 2022, involved using his insider access to provide information about TIAA-CREF’s trades to his co-conspirator, who then bought and sold the securities in advance of the trades.

According to court filings, Billimek and his co-conspirator engaged in front-running trades on over 1,000 occasions, generating tens of millions of dollars in profits. In an effort to hide their scheme, Billimek used prepaid, unregistered ‘burner’ phones to communicate with his co-conspirator throughout the trading day, and lied to financial institutions about the source of funds they received.

U.S. Attorney Damian Williams praised the outstanding investigative work of the Federal Bureau of Investigation and thanked the U.S. Securities and Exchange Commission, which has filed a parallel civil action. ‘Lawrence Billimek shamelessly abused his position, orchestrating an insider trading scheme that pocketed tens of millions in illicit gains,’ Williams said. ‘He thought that hiding his conduct behind burner phones and lies would shield him from detection from law enforcement. He was mistaken.’

Billimek’s sentence also includes three years of supervised release and a forfeiture of $12,249,000. Assistant U.S. Attorney Jason A. Richman is in charge of the prosecution. This case is being handled by the Office’s Securities and Commodities Fraud Task Force.

Prosecuting white-collar crimes like this sends a clear message that no one, regardless of their position, privilege, or the type of crime they commit, is outside the reach of the law, Williams emphasized. The case serves as a reminder that law enforcement will aggressively pursue and prosecute those who engage in insider trading and other white-collar crimes.