Hamed Ettu, Insider Trading Scheme, Pennsylvania 2019

A Texas man has been sentenced for his involvement in an insider trading scheme that targeted two technology companies.

Hamed Ettu, 44, of Richmond, TX, was sentenced to three years' probation, the first nine months of which he will be required to serve in home confinement, 120 hours of community service and a fine of $15,000.

U.S. District Judge Gene E.K. Pratter also imposed a forfeiture judgment of $73,244, which the defendant has already paid.

Ettu pleaded guilty in February 2019 to a charge of conspiracy to commit securities fraud. He was accused of receiving material non-public information from Damilare Sonoiki, a junior analyst at a global investment bank in New York.

Sonoiki allegedly obtained the information in violation of his duty of confidentiality and passed it on to Ettu, who used it to purchase call options in Compuware and Move between July and September 2014.

When proposed mergers were announced for each company, the value of Ettu's options increased significantly, resulting in a profit of more than $93,000.

U.S. Attorney William McSwain called the case a priority, stating that insider trading undermines faith in financial markets and harms ordinary investors.

The case was investigated by the Federal Bureau of Investigation and the Securities and Exchange Commission, and is being prosecuted by Assistant United States Attorney David J. Ignall.

Source: https://www.justice.gov/usao-edpa/pr/texas-man-sentenced-insider-trading-scheme