Post by marshacmkx on Oct 7, 2005 12:53:11 GMT -6
www.amtddj.inlumen.com/bin/djstory?StoryId=Cq0xYWaebqLqWmduYndm
Ex-Broker Pleads Guilty In 'Front-Running' Case
10/07/2005
Dow Jones News Services
(Copyright © 2005 Dow Jones & Company, Inc.)
(Updates with lawyer for Casbarro declining to comment in fifth paragraph.)
By Chad Bray
Of DOW JONES NEWSWIRES
NEW YORK (Dow Jones)--A former Citigroup Global Markets stock broker pleaded guilty Friday to conspiracy in connection with a securities fraud scheme uncovered during an ongoing investigation into "front-running" activity in the securities industry.
In a press release, the U.S. Attorney's office in Brooklyn said Ralph D. Casbarro, 43 years old, entered his guilty plea to one count of conspiracy to commit securities fraud before U.S. District Judge I. Leo Glasser in Brooklyn on Friday.
"By participating in this fraudulent 'front-running' scheme, Casbarro breached his duty to his employer and to its clients," U.S. Attorney Roslynn R. Mauskopf said in a statement. "We are committed to bringing to justice securities professionals who exploit confidential non-public information for their own personal gain."
Casbarro is one of four former stock brokers charged by federal prosecutors in August in connection with a purported "front-running" scheme that allegedly generated more than $600,000 in illegal profits between January 2002 and December 2003.
A lawyer for Casbarro declined to comment on Friday.
Prosecutors said Casbarro left his telephone off the hook next to the "squawk box," or internal speaker system at the Citigroup (C) unit's offices, so that day traders at A.B. Watley Inc. could hear information on trades placed by Citigroup customers.
In return, the traders paid Casbarro with cash bribes and substantial brokerage commissions generated from so-called "wash trades," or simultaneously buying and selling the same amount of a security at the same price for the sole purpose of generating a commission, the government said.
The day traders profited by "front-running," or trading ahead of large customer order by clients of Citigroup and other brokerage firms, prosecutors said.
The SEC has separately filed civil charges against Casbarro in the matter.
Casbarro faces up to 25 years in prison on the charges and a fine of up to $250,000.
-By Chad Bray, Dow Jones Newswires; 212-227-2017; chad.bray@dowjones.com
(END) Dow Jones Newswires
10-07-05 1436ET
Ex-Broker Pleads Guilty In 'Front-Running' Case
10/07/2005
Dow Jones News Services
(Copyright © 2005 Dow Jones & Company, Inc.)
(Updates with lawyer for Casbarro declining to comment in fifth paragraph.)
By Chad Bray
Of DOW JONES NEWSWIRES
NEW YORK (Dow Jones)--A former Citigroup Global Markets stock broker pleaded guilty Friday to conspiracy in connection with a securities fraud scheme uncovered during an ongoing investigation into "front-running" activity in the securities industry.
In a press release, the U.S. Attorney's office in Brooklyn said Ralph D. Casbarro, 43 years old, entered his guilty plea to one count of conspiracy to commit securities fraud before U.S. District Judge I. Leo Glasser in Brooklyn on Friday.
"By participating in this fraudulent 'front-running' scheme, Casbarro breached his duty to his employer and to its clients," U.S. Attorney Roslynn R. Mauskopf said in a statement. "We are committed to bringing to justice securities professionals who exploit confidential non-public information for their own personal gain."
Casbarro is one of four former stock brokers charged by federal prosecutors in August in connection with a purported "front-running" scheme that allegedly generated more than $600,000 in illegal profits between January 2002 and December 2003.
A lawyer for Casbarro declined to comment on Friday.
Prosecutors said Casbarro left his telephone off the hook next to the "squawk box," or internal speaker system at the Citigroup (C) unit's offices, so that day traders at A.B. Watley Inc. could hear information on trades placed by Citigroup customers.
In return, the traders paid Casbarro with cash bribes and substantial brokerage commissions generated from so-called "wash trades," or simultaneously buying and selling the same amount of a security at the same price for the sole purpose of generating a commission, the government said.
The day traders profited by "front-running," or trading ahead of large customer order by clients of Citigroup and other brokerage firms, prosecutors said.
The SEC has separately filed civil charges against Casbarro in the matter.
Casbarro faces up to 25 years in prison on the charges and a fine of up to $250,000.
-By Chad Bray, Dow Jones Newswires; 212-227-2017; chad.bray@dowjones.com
(END) Dow Jones Newswires
10-07-05 1436ET
