Indian held for insider trading, faces 20 years

New York, April 26: A 41year-old Indian citizen has been arrested on charges of insider trading and making thousands of dollars using confidential information of a private equity firm’ s acquisition of a technology company. Avaneesh Krishnamoorthy, who lives in New Jersey, served as a vice -president and risk management specialist for a Manhattan-based investment bank from 2015 till this month.

He is charged with one count of securities fraud, which carries a maximum sentence of 20 years in prison and a maximum fine of $5 million.

Acting Manhattan US Attorney Joon Kim said Krishnamoorthy made approximately $48,000 in illicit profits through the insider trading scheme.

The Securities and Exchange Commission filed a parallel civil complaint alleging that the accused learned that Golden Gate Capital planned to acquire publicly traded advertising technology company Neustar Inc. He then began trading in Neustar securities.

The trading took place in two brokerage accounts that Krishnamoorthy allegedly kept hidden from his employer, which had been approached by Golden Gate Capital to finance the transaction. Krishnamoorthy was presented in Manhattan federal court before United States Magistrate judge Kevin Nathaniel Fox on Tuesday.

Avaneesh Krishnamoorthy, who lives in New Jersey, served as a V-P and risk management specialist for a Manhattan-based investment bank from 2015 till this month

He is charged with one count of securities fraud which carries a maximum sentence of 20 years in prison and a maximum fine of $5m