Sean Wygovsky, Stock Manipulation, New York 2021

AUSTIN, Texas – Sean Wygovsky, a trader at a large Canadian asset management firm, was arrested today in Austin, Texas, for engaging in a multimillion-dollar front running scheme to steal confidential information about the trade orders of the Employer Firm in order to conduct hundreds of timely, profitable personal securities trades in the same stocks as the Employer Firm.

According to a Complaint in Manhattan federal court, Wygovsky, who has been employed at the Employer Firm since approximately 2013, had access to the trade information and trade orders of the Employer Firm. He allegedly used this information to make numerous trades in anticipation of the bump or dip the firm’s buying or selling would cause.

To conceal the scheme, Wygovsky allegedly made his front running trades through brokerage accounts of certain of his relatives. He made or directed over 700 timely transactions that netted him more than $3.6 million in illegal profits.

Manhattan U.S. Attorney Audrey Strauss said: ‘As alleged, Sean Wygovsky illegally exploited his access to his employer firm’s yet-to-be-executed trade orders to make numerous trades in anticipation of the bump or dip the firm’s buying or selling would cause. To conceal the scheme, Wygovsky allegedly made his front running trades through brokerage accounts of certain of his relatives.’

FBI Assistant Director William F. Sweeney Jr. said: ‘Over the course of several years, as alleged, Wygovsky made hundreds of short-term trades based on inside information that ultimately reaped more than $3 million in profits. Schemes like the one alleged here grossly affect the integrity of our financial markets and remain a top priority for our financial fraud investigative teams.’

As alleged in the Complaint unsealed today in Manhattan federal court, Wygovsky was arrested this morning in Austin, Texas, and is expected to be presented in federal court this afternoon before a U.S. Magistrate Judge for the Western District of Texas.

Wygovsky has been charged with securities fraud and wire fraud. The Employer Firm is an asset management firm based in Toronto, Canada, with at least approximately $19 billion in assets under management.

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