Zachary Zwerko, Insider Trading, New York 2014

Zachary Zwerko, a 32-year-old former Senior Finance Analyst at a pharmaceutical company in New Jersey, has been charged with insider trading in Manhattan federal court. According to allegations, Zwerko passed material, nonpublic information about potential merger and acquisition activity to a co-conspirator, resulting in profits of approximately $722,000.

As alleged, Zwerko, who worked in the Financial Evaluation and Analysis Group of the pharmaceutical company, had access to a computer directory containing material, nonpublic information related to the company's potential acquisitions.

On multiple occasions, Zwerko passed this information to a co-conspirator, who then traded in the securities of the target companies. The co-conspirator, identified as CC-1, earned profits of at least approximately $722,000 from this illegal trading.

Manhattan U.S. Attorney Preet Bharara said, 'Today we announce charges against yet another individual for alleged insider trading. As alleged, Zachary Zwerko was a spy in the camp of his own company who passed secret merger and acquisition information to his co-conspirator so that lucrative illegal trades could be made.'

FBI Assistant Director-in-Charge George Venizelos added, 'Zwerko is charged, like so many others, with insider trading. This is a crime that undermines the public's faith in our financial markets and puts companies at risk.'

Zwerko is charged with one count of conspiracy to commit securities fraud, which carries a maximum sentence of five years in prison and a maximum fine of $250,000, or twice the gross gain or loss from the offense.

The U.S. Securities and Exchange Commission (SEC) has also announced civil charges against Zwerko in a separate action. The investigation is ongoing, and Zwerko is expected to be presented in Boston federal court today.

Source: https://www.justice.gov/usao-sdny/pr/former-senior-finance-analyst-pharmaceutical-company-charged-manhattan-federal-court