Securities: 13 Charged in Securities Fraud Scheme

Eleven top Wall Street workers and a husband and wife pair of lawyers were charged for their illegal trading in an alleged securities fraud scheme. The scheme earned the 13 more than $15 million. The case was said to be "one of the most pervasive Wall Street insider trading rings since the days of Ivan Boesky and Dennis Levine" by Linda Chatman Thomsen, the director of the Division of Enforcement for the Securities and Exchange Commission. Thomsen said that the case was of concern because the defendants included registered representatives, compliance personnel, hedge fund portfolio managers, and the lawyers. The defendant used illegal tips over five years in order to conduct their illegal trading.

13 Charged In Securities Fraud Scheme

U.S. Attorney Michael Garcia said that the defendants relied upon tips given to them by insiders at UBS Securities LLC and Morgan Stanley and Co. One of the defendants, Mitchel Guttenberg, was an executive director and institutional client manager at UBS. Prosecutors say that two insider trading schemes and two separate bribery schemes are involved in the case.