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.
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