U.S. charges six investment bankers over insider trading scheme

U.S. prosecutors said on Tuesday they had charged six members of an insider trading ring who worked for firms including Goldman Sachs Group, Moelis and Centerview Partners and allegedly booked tens of millions of dollars in illicit profits.

The U.S. Attorney’s Office for the Southern District of New York has arrested three members of the international ring and unsealed four separate indictments in recent days.

The bankers and others all booked trading profits off nonpublic information related to deals including acquisitions, the prosecutors said in a statement. read more »

Former SEC investigator charged with giving insider information to firm where he sought employment

A former SEC investigator is charged with obstruction of justice, unauthorized computer access and disclosure of confidential information to a firm where he sought employment.

The firm, GPB Capital, specializes in alternative asset management and controls about $1.5 billion.

Prosecutors say Michael S. Cohn disclosed inside information on ongoing investigations multiple times to GPB senior management. read more »

Racketeering Law Makes Its Return to Wall Street

Prosecutors have not brought a case under the Racketeer Influenced and Corrupt Organizations Act, or RICO, against Wall Street traders since the investment firm Princeton Newport Partners was indicted in the mid-1980s. The RICO charges filed recently against three traders at JPMorgan Chase indicate that prosecutors may be resurrecting the law to target white-collar defendants.

Prosecutors accused Michael Nowak, who was the head of precious metals trading at the bank, along with Gregg Smith and Christopher Jordan, of organizing the precious metals desk as a RICO enterprise to engage in “spoofing,” as well as wire and bank fraud in which JPMorgan and its customers were the victims. read more »

Boeing profits fall by more than half as 737 Max scandal swirls

Boeing’s profits more than halved in the last three months as the company struggled to recover from two fatal crashes of its top-selling 737 Max aircraft and current trade disputes took their toll.

The company, which still expects the troubled 737 Max jet to return to service by the end of the year, also said it plans to cut production of its wide-bodied 787 Dreamliner, a move that reflects the effect of global trade tensions.

The company said slowed production of the Max will cost an additional $900m on top of $2.7bn loss of income already anticipated. Overall revenue for the quarter dropped 20% – less than investors feared. Boeing shares, which have dropped 20% since the Max was grounded in March, rose 3%. read more »