Two Charged With Insider Trading In Manhattan
NEW YORK (AP / WCBS 880) - Federal prosecutors in Manhattan have charged two men with making $2.6 million in illegal profits on insider stock trades.
WCBS 880′s Irene Cornell On The Case
Scott Allen, of Atlanta, and John Bennett, of Norwalk, Conn., surrendered Thursday.
A criminal complaint alleges that while working as a financial consultant, Allen got inside information about the sales of pharmaceuticals and then fed it over to Bennett, a stock trader and longtime friend.
The complaint says Bennett made trades based on the information in 2008 and 2009 that made $2.6 million and in return, he gave Allen $100,000 in kickbacks.
U.S. Attorney Preet Bharara said they tried to cover it all up by staying off of their personal phones, meeting only in person, and using a payphone at LaGuardia Airport to arrange meetings.
Bennett was to appear later Thursday in court in Manhattan; Allen was to appear in Georgia. The names of their lawyers were not immediately available.
(TM and Copyright 2011 CBS Radio Inc. and its relevant subsidiaries. CBS RADIO and EYE Logo TM and Copyright 2011 CBS Broadcasting Inc. Used under license. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.)