Ex-Credit Suisse Banker Found Guilty of Insider Trading

By Reuters -  |  Posted 2008-02-04 Email Print this article Print
 
 
 
 
 
 
 

A U.S. jury found a former Credit Suisse Group investment banker Hafiz Naseem guilty of insider trading and conspiracy.

NEW YORK (Reuters) - A U.S. jury on Monday found a former Credit Suisse Group investment banker guilty of insider trading and conspiracy.

Prosecutors accused Hafiz Naseem, 37, of participating in a $7.5 million scheme to leak inside information about pending corporate takeovers by calling a friend in his native Pakistan, who then traded on the unlawful tips.

Naseem was accused of conspiracy to commit securities fraud and 28 additional counts of insider trading, and faces at least 25 years in prison and deportation.

He sat impassively beside his lawyer as the jury foreperson answered guilty on each of the 29 counts. The jury of eight women and four men had been deliberating since Thursday afternoon.

The trial before U.S. District Judge Robert Patterson follows a mistrial in the case in December, when a different judge found that jurors had failed to follow instructions.

Prosecutors say Naseem fed nonpublic, material information on pending transactions to Ajaz Rahim, a former head of the investment banking group at Faysal Bank Ltd in Pakistan.

Among those deals, prosecutors contend, was the $32 billion private equity buyout of power company TXU Corp.

An arrest warrant is pending against Rahim, who is fighting extradition from Pakistan and is not on trial.

(Reporting by Martha Graybow; Editing by Brian Moss)

Copyright Reuters 2008. All rights reserved. Users may download and print extracts of content from this website for their own personal and non-commercial use only. Republication or redistribution of Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Reuters. Reuters and the Reuters sphere logo are registered trademarks or trademarks of the Reuters group of companies around the world.



 
 
 
 
 
 
 
 
 
 

Submit a Comment

Loading Comments...

Manage your Newsletters: Login   Register My Newsletters