On February 14, 2019 and February 22, 2019, respectively, A federal district court in Securities and Exchange Commission v. Walter C. Little and Andrew M. Berke, Civil Action No. 1:17-CV-03536 (S.D.N.Y., filed May 11, 2017), entered judgments against two inside traders, a former law firm partner and his neighbor.
Profits of about $1 million were made with the stolen inside info.
The SEC alleged that Walter C. Little, an attorney, viewed confidential material on his law firm’s computer network related to about 11 deals involving law firm clients. Little then purportedly traded and tipped his neighbor, Andrew M. Berke. The Complaint stated that the reading occurred from February 2015 to February 2016.
Little and Berke also pled guilty to criminal charges. Little was sentenced to 27 months in February 2018 and was ordered to pay criminal forfeiture. On April 17, 2018, Berke was sentenced to time served and three years of supervised release on April 17, 2018, with home detention, and criminal forfeiture.
The judgment against Little deemed his disgorgement obligation of $452,998 as satisfied by his criminal forfeiture. The judgment against Berke deemed his disgorgement obligation of $555,269 satisfied by a combination of his forfeiture and further payments.
Anthony M. Abraham, Esq., PC is experienced in broker fraud, churning and unauthorized trading claims. If you suspect that your account has been mismanaged, please call us Toll Free at 1-877-430-4877 for a Free Consultation or email us at Anthony@Abrahamattorneys.com.