Crime Watch

North Merrick man sentenced in $1.16M insider trading scheme

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A 60-year-old North Merrick man was sentenced last week to four years of probation, with the first year to be served in home detention, after he used inside information provided by his son to trade in securities at five health-care companies, said Preet Bharara, U.S. attorney for the Southern District of New York.

The scheme, Bharara said, netted $1.16 million over four years. Robert Stewart, who pleaded guilty on Aug. 15 last year, reaped $150,000, which he was ordered to repay.

“Robert Stewart received non-public mergers and acquisitions information from his investment banker son, and then used this illegal edge to earn substantial trading profits,” the U.S. attorney said. “Stewart has admitted to violating federal securities laws and now stands a convicted felon.”

Bharara praised the investigative work of the Federal Bureau of Investigation and also thanked the Securities and Exchange Commission, which has brought civil actions against the defendant.

The charges were brought by President Obama’s Financial Fraud Enforcement Task Force, which was established to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies yet assembled to combat fraud. For more information about the task force, go to www.StopFraud.gov.

Assistant U.S. Attorneys Sarah McCallum and Brooke Cucinella were in charge of Stewart’s prosecution.