A Florida man faces insider trading charges in New Jersey for allegedly tipping off two people to a company acquisition.
New Jersey's U.S. Attorney announced the arrest of 37-year-old Kevin Dowd of Boca Raton on a charge of conspiracy to commit securities fraud.
Prosecutors say Dowd used his position at the Florida office of an unnamed global wealth management firm to profit from a tip that Gilead Science Inc. was buying New Jersey-based Pharmasset Inc.
Dowd allegedly told two co-conspirators about the upcoming deal, which prosecutors say Dowd learned about from a customer.
Prosecutors say the alleged co-conspirators netted more than $700,000 buying stock before the $11 billion acquisition.
They allegedly paid Dowd $35,000 for his part in the plan.
Date: January 25, 2013
Source: Associated Press