The Securities and Exchange Commission (SEC) has yesterday charged an analyst at an international investment bank with insider trading.
According to the SEC, Bill Tsai, a junior investment broker, had a confidential information about Siris Capital Group’s plans to acquire Electronics for Imaging, Inc. (EFII). Tsai was working from the bank’s New York office.
Knowing about the future deal, Tsai purchased EFII call options, which he sold for a profit of approximately $98,750 shortly after the acquisition was announced in the middle of April 2019.
The broker attempted to hide his illegal activity by conducting his trading in a brokerage account that he concealed from his employer.
As alleged in our complaint, Tsai reaped nearly $100,000 in illicit profits by misusing highly confidential information entrusted to him,” said Joseph G. Sansone, Chief of the SEC Enforcement Division’s Market Abuse Unit. “Using our enhanced analysis and detection capabilities, the SEC was able to act swiftly, exposing Tsai’s misconduct just months after his illegal trading took place.
The U.S. Attorney’s Office for the Southern District of New York has announced criminal charges against Tsai.