IBKR opens @ 50 or so.
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- Start date
NEW YORK, May 10 (Reuters) - U.S. prosecutors on Thursday said a former Morgan Stanley <MS.N> financial analyst and her husband, an ex-hedge fund analyst at ING Group <ING.AS>, have been arrested on insider trading charges.
The pair, Xujia "Jennifer" Wang and Ruopian Chen of Englishtown, New Jersey, are accused of trading based on material, nonpublic information that Wang obtained from Morgan Stanley, the U.S. Attorney's Office in Manhattan said.
Wang and Chen were each released on $2 million bail bonds on their own recognizance.
Prosecutors said the couple, from December 2005 through March 2007, traded in the securities of Town and Country Trust, Glenborough Realty Trust Inc. and Genesis HealthCare Corp. <GHCI.O>, based on nonpublic information.
The bail is secured by their New Jersey home and $150,000 in cash and property. Chen consented to freeze his Charles Schwab account and to strict electronic monitoring of his whereabouts. Both surrendered their travel documents.
Glenborough was acquired by a Morgan Stanley affiliate in November 2006. Town and Country announced in late 2005 it would sell itself to investors led by units of Morgan Stanley and Onex Corp. <OCX.TO> of Canada.
The government said Wang had access to documentation related to Glenborough and Town and Country, as well as access to a computer drive with information on the potential acquisition of Genesis, that she passed on to her husband, leading to trades in securities that netted over $600,000.
The U.S. Securities and Exchange Commission also filed civil insider trading charges against the pair.
'TO PLEAD NOT GUILTY'
David Spears, a lawyer for the couple, said: "my clients intend to plead not guilty to any criminal charges against them."
<b>The two resigned earlier this year from their respective employers, following an SEC inquiry and internal investigations by Morgan Stanley and ING, prosecutors said. Prosecutors said the couple conducted the trades in an Interactive Brokers Group Inc. <IBKR.O> account set up in the name of Wang's mother, Zhiling Feng, who lives in Beijing, China.</b>
Wang, 31, who worked as a vice president in Morgan Stanley's finance department, and Chen, 34, then the vice president at ING Investment Management Americas, were each charged with one count of conspiracy to commit securities fraud and three counts of securities fraud.
The pair were expected to appear before a U.S. magistrate judge in Manhattan federal court later on Thursday.
A Morgan Stanley spokesman, in a statement, called the alleged wrongdoing "an egregious violation of Morgan Stanley's values and policies."
An ING Investment Management spokeswoman did not immediately return messages seeking comment.
A preliminary hearing in the case was set for June 11.
The case is the latest in a string of insider trading accusations announced recently by Manhattan federal prosecutors and U.S. securities regulators.
Earlier on Thursday, a former Morgan Stanley lawyer and her attorney husband pleaded guilty to conspiracy and securities fraud in a Wall Street insider trading case that has snared more than a dozen people. That case was first disclosed in early March.
Last week, a former Credit Suisse <CSGN.VX> investment banker was accused of leaking inside information. Prosecutors contend he tipped off a banker in Pakistan about acquisitions before they were publicly disclosed, including the $32 billion buyout of Texas power company TXU Corp. <TXU.N>.
Meanwhile, a married couple in Hong Kong were accused in a civil complaint by the SEC this week of insider trading stemming from what the government said was unusual and suspicious purchases of Dow Jones & Co Inc. <DJ.N> stock prior to News Corp.'s <NWSa.N> $5 billion takeover bid. (Additional reporting by Joseph Giannone, Jonathan Stempel and Emily Chasan)
http://yahoo.reuters.com/news/artic...d=&cap=&sz=13&WTModLoc=HybArt-C1-ArticlePage1
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The pair, Xujia "Jennifer" Wang and Ruopian Chen of Englishtown, New Jersey, are accused of trading based on material, nonpublic information that Wang obtained from Morgan Stanley, the U.S. Attorney's Office in Manhattan said.
Wang and Chen were each released on $2 million bail bonds on their own recognizance.
Prosecutors said the couple, from December 2005 through March 2007, traded in the securities of Town and Country Trust, Glenborough Realty Trust Inc. and Genesis HealthCare Corp. <GHCI.O>, based on nonpublic information.
The bail is secured by their New Jersey home and $150,000 in cash and property. Chen consented to freeze his Charles Schwab account and to strict electronic monitoring of his whereabouts. Both surrendered their travel documents.
Glenborough was acquired by a Morgan Stanley affiliate in November 2006. Town and Country announced in late 2005 it would sell itself to investors led by units of Morgan Stanley and Onex Corp. <OCX.TO> of Canada.
The government said Wang had access to documentation related to Glenborough and Town and Country, as well as access to a computer drive with information on the potential acquisition of Genesis, that she passed on to her husband, leading to trades in securities that netted over $600,000.
The U.S. Securities and Exchange Commission also filed civil insider trading charges against the pair.
'TO PLEAD NOT GUILTY'
David Spears, a lawyer for the couple, said: "my clients intend to plead not guilty to any criminal charges against them."
<b>The two resigned earlier this year from their respective employers, following an SEC inquiry and internal investigations by Morgan Stanley and ING, prosecutors said. Prosecutors said the couple conducted the trades in an Interactive Brokers Group Inc. <IBKR.O> account set up in the name of Wang's mother, Zhiling Feng, who lives in Beijing, China.</b>
Wang, 31, who worked as a vice president in Morgan Stanley's finance department, and Chen, 34, then the vice president at ING Investment Management Americas, were each charged with one count of conspiracy to commit securities fraud and three counts of securities fraud.
The pair were expected to appear before a U.S. magistrate judge in Manhattan federal court later on Thursday.
A Morgan Stanley spokesman, in a statement, called the alleged wrongdoing "an egregious violation of Morgan Stanley's values and policies."
An ING Investment Management spokeswoman did not immediately return messages seeking comment.
A preliminary hearing in the case was set for June 11.
The case is the latest in a string of insider trading accusations announced recently by Manhattan federal prosecutors and U.S. securities regulators.
Earlier on Thursday, a former Morgan Stanley lawyer and her attorney husband pleaded guilty to conspiracy and securities fraud in a Wall Street insider trading case that has snared more than a dozen people. That case was first disclosed in early March.
Last week, a former Credit Suisse <CSGN.VX> investment banker was accused of leaking inside information. Prosecutors contend he tipped off a banker in Pakistan about acquisitions before they were publicly disclosed, including the $32 billion buyout of Texas power company TXU Corp. <TXU.N>.
Meanwhile, a married couple in Hong Kong were accused in a civil complaint by the SEC this week of insider trading stemming from what the government said was unusual and suspicious purchases of Dow Jones & Co Inc. <DJ.N> stock prior to News Corp.'s <NWSa.N> $5 billion takeover bid. (Additional reporting by Joseph Giannone, Jonathan Stempel and Emily Chasan)
http://yahoo.reuters.com/news/artic...d=&cap=&sz=13&WTModLoc=HybArt-C1-ArticlePage1
Ruff Ruff
http://biz.yahoo.com/seekingalpha/070510/35138_id.html?.v=1
SeekingAlpha
Why Amazon Will Never Really Be Profitable
Thursday May 10, 4:41 am ET
Saul Sterman submits: What first caught our attention back in February was an Amazon (NasdaqGS: AMZN) want-to-be stock called Overstock.com (NasdaqGM: OSTK). This internet retailer did not have any friendly support. To make a long story short, OSTK cut out the middleman and went directly to the public with its IPO. The establishment never forgot and most likely wanted to teach OSTK a lesson though no foul play has ever been proven. After seeing what OSTK went through, newcomers will think twice before initiating a Dutch auction for an IPO.
But I think I mentioned this before.
SeekingAlpha
Why Amazon Will Never Really Be Profitable
Thursday May 10, 4:41 am ET
Saul Sterman submits: What first caught our attention back in February was an Amazon (NasdaqGS: AMZN) want-to-be stock called Overstock.com (NasdaqGM: OSTK). This internet retailer did not have any friendly support. To make a long story short, OSTK cut out the middleman and went directly to the public with its IPO. The establishment never forgot and most likely wanted to teach OSTK a lesson though no foul play has ever been proven. After seeing what OSTK went through, newcomers will think twice before initiating a Dutch auction for an IPO.
But I think I mentioned this before.
I found it interesting that those arrested used IB as their broker. That tells me that IB really does have wide reaching international customers and the stock just might be a buy once it stops going down.
But even in this raging bull market and with all the publicity surrounding them going public it bothers me that it has done nothing so far but to go south.
I just hope it is not all bark with no bite.
Whoof Whoof