Kris Bortnovsky, Insider Trading, Massachusetts 2023

Former hedge fund manager Kris Bortnovsky, 44, of Bal Harbour Village, Florida, was arrested today in connection with a multi-million-dollar insider trading scheme and obstruction of justice. Bortnovsky, also known as ‘Kris Bort,’ faces serious charges that could land him in prison for up to 25 years if convicted.

According to the indictment, Bortnovsky conspired with others to trade in the stocks of several publicly traded companies based on material non-public information regarding the earnings results and merger-and-acquisition activity of those companies. The scheme allegedly took place from at least 2017 through 2019.

When interviewed by agents, Bortnovsky made several materially false statements, the indictment alleges. After being charged with securities fraud, Bortnovsky intimidated and attempted to intimidate a then-cooperating witness, in violation of his pre-trial conditions of release.

The charges against Bortnovsky include two counts of securities fraud; two counts of conspiracy to commit securities fraud; one count of making false statements; and one count of witness intimidation. The government’s investigation remains ongoing.

The charge of conspiracy to commit securities fraud in violation of Title 18 provides for a sentence of up to 25 years in prison, five years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. The charge of securities fraud in violation of Title 18 provides for a sentence of up to 25 years in prison, five years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater.

The indictment also unsealed charges against three other defendants who have previously pleaded guilty to their involvement in the insider trading scheme. A fifth defendant who participated in the scheme previously pleaded guilty and was sentenced to one year in prison.

United States Attorney Leah B. Foley and Kimberly Milka, Acting Special Agent in Charge of the Federal Bureau of Investigation’s Boston Division, made the announcement today. The U.S. Securities and Exchange Commission and the Federal Bureau of Investigation, Miami Field Office, provided valuable assistance in this matter. Assistant United States Attorneys Ian J. Stearns and Kaitlin R. O’Donnell of Foley’s Securities, Financial & Cyber Fraud Unit are prosecuting the case.

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