Banking Couple Arrested On Insider Charges
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Jennifer Wang, 31, and Ruben Chen, 34, of Englishtown, New Jersey, are accused of using non-public information for financial gain. Ms Chen is accused of stealing information from Morgan Stanley about the securities in three companies and passing this on to her husband. It is alleged that the couple carried out their trading through an account set up in the name of Ms Wang's mother. The bankers, who left their respective firms earlier this year following a probe by regulators and internal investigations, were each charged with one count of conspiracy to commit securities fraud and three counts of securities fraud. They plan to plead not guilty, and were freed on $2m bail .
Linda Thomsen, Director of Enforcement over at US regulator The Securities and Exchange Commission, said that the 'action continues our crackdown on illegal insider trading. The commission will simply not allow industry professionals to illegally profit from their access to non-public information'.
A spokesperson for Morgan Stanley said that 'the alleged wrongdoing by a former employee of our firm is an egregious violation of Morgan Stanley's values and policies. We fully support and will provide every assistance to the government's prosecution of insider trading by those who take personal advantage of the trust of our clients and the firm'.
Finally, Randi Collatta, a former Morgan Stanley compliance officer, and her lawyer husband Christopher, pleaded guilty Thursday to conspiracy and securities fraud. The couple were two of 13 people criminally charged over the last few weeks for another alleged $15m insider scam - the biggest Wall Street insider scandal since the 1980s. The couple are said to have received kickbacks of just $9,000 for passing on tips alleged to have resulted in more than $600,00 in illegal profits. Both are free on $250,000 bail each, and await sentencing.
