Mounir Gad, Securities Fraud, California 2008

San Jose, CA – A shocking case of insider trading has come to light in the heart of Silicon Valley, with a former bank vice president agreeing to plead guilty to two counts of securities fraud. Mounir Gad, 34, of San Jose, and his friend Nathan Guido, 38, of San Jose, are accused of sharing material non-public information regarding the acquisition of companies, allowing them to profit from the transactions.

According to the indictment, Gad, a trained investment banking professional, repeatedly received training and guidance on the proper use of confidential information. Despite this, he allegedly used the information for personal gain, violating insider trading laws on two occasions. In April 2015 and August 2016, Gad obtained material non-public information through his employer and shared it with Guido, who used the information to execute securities transactions.

The information alleges that both Gad and Guido personally benefited from the transactions and shared the profits from the illegal trades. The indictment charges them with two counts each of securities fraud, which carries a maximum statutory penalty of 20 years in prison and a $5,000,000 fine.

At an arraignment earlier today before U.S. Magistrate Judge Donna M. Ryu, Gad pleaded not guilty to the charges but informed the court he has signed a written agreement to plead guilty. A change of plea hearing has been scheduled for August 4, 2021, before the Hon. Lucy H. Koh, U.S. District Judge.

Guido, on the other hand, pleaded not guilty to the charges and acknowledged that he entered into an agreement with the government to defer his prosecution if he complies with the terms of the agreement.

An information contains allegations only, and Gad and Guido are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. The Securities and Exchange Commission has filed a separate enforcement action against Gad and Guido.

Assistant U.S. Attorney Sarah E. Griswold is prosecuting this case with assistance from Jessica Leung. The case was investigated by the FBI. The defendants’ next court appearance is scheduled for August 4, 2021, where they will face the consequences of their alleged crimes.

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