TRENTON, N.J. – A professional day-trader admitted today to repeatedly trading on inside information related to confidentially marketed stock offerings, personally netting hundreds of thousands of dollars in illicit profits, Acting U.S. Attorney William E. Fitzpatrick announced.
Joseph Spera, 56, of Boca Raton, Florida, pleaded guilty before U.S. District Judge Michael A. Shipp in Trenton federal court to an information charging him with one count of conspiracy to commit securities fraud and one count of securities fraud.
According to documents filed in this case and statements made in court:
On numerous occasions between June 2010 and July 2013, Spera and his conspirators short-sold the securities of at least 13 public companies, based on inside information obtained by Spera’s conspirator, Steven Fishoff, and others.
Spera admitted that in breach of the wall-crossing agreements, Fishoff allegedly tipped Spera, directly or through his conspirator, Paul Petrello, with the inside information about the confidentially marketed offerings. Specifically, he allegedly advised Spera of the stock trading symbols of the companies, and the timing and sometimes the pricing of the upcoming offerings.
Spera faces a maximum potential penalty of five years in prison and a fine of $250,000 on the conspiracy count and a maximum potential penalty of 20 years in prison and a fine of $5 million on the securities fraud count. Spera also agreed to pay a forfeiture money judgment of $768,766.
Spera is scheduled to be sentenced April 12, 2018. In a separate civil action, the U.S. Securities and Exchange Commission (SEC) today filed a complaint against Spera in Trenton federal court.
Fishoff has been indicted, and his trial is scheduled for March 19, 2018. Chernin, Costantin and Petrello have pleaded guilty for their involvement in the scheme and await sentencing.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation leading to today’s guilty plea. He also thanked the SEC’s New York Regional Office for its assistance.
Key Facts
- State: New Jersey
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
ðŸâ€Â’ Get the grimiest stories delivered weekly. Subscribe free →
MORE FEDERAL CRIME NEWS
White Collar CrimeWhite Collar CrimeWhite Collar CrimeWhite Collar Crime