Ex-Nuveen Trader Pleads Guilty to Insider Scheme
A former trader at Nuveen LLC, a Chicago-based asset management firm, has pleaded guilty to a $47 million insider trading scheme. The trader, David Riley, admitted to using confidential information to purchase stocks and options in advance of public announcements.
Background of the Scheme
Riley worked as a trader at Nuveen from 2015 to 2018. During that time, he had access to confidential information about upcoming mergers and acquisitions. He used this information to purchase stocks and options in advance of the public announcements.
Riley was able to make a profit of $47 million from his insider trading. He then transferred the money to offshore accounts in the Cayman Islands and Switzerland.
Investigation and Charges
The U.S. Securities and Exchange Commission (SEC) began investigating Riley in 2018. They found that he had used confidential information to purchase stocks and options in advance of public announcements.
The SEC charged Riley with insider trading and securities fraud. He was also charged with money laundering and obstruction of justice.
Riley Pleads Guilty
Riley pleaded guilty to all charges in November 2023. He admitted to using confidential information to purchase stocks and options in advance of public announcements. He also admitted to transferring the profits to offshore accounts.
Sentencing
Riley faces up to 20 years in prison and a fine of up to $5 million. He is scheduled to be sentenced in January 2024.
Impact on Nuveen
The insider trading scheme has had a significant impact on Nuveen. The company has been forced to pay a $20 million penalty to the SEC. It has also implemented new policies and procedures to prevent similar incidents from occurring in the future.
Reaction from Nuveen
Nuveen released a statement following Riley’s guilty plea. The company said it was “deeply disappointed” by Riley’s actions and that it had taken “immediate and decisive action” to address the situation.
Conclusion
David Riley, a former trader at Nuveen LLC, has pleaded guilty to a $47 million insider trading scheme. He admitted to using confidential information to purchase stocks and options in advance of public announcements. He faces up to 20 years in prison and a fine of up to $5 million. Nuveen has been forced to pay a $20 million penalty to the SEC and has implemented new policies and procedures to prevent similar incidents from occurring in the future.