Former Broker Is Sentenced to 5 Years for Insider Trading

Former Broker Is Sentenced to 5 Years for Insider Trading - 2/25/2009

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Former Broker Is Sentenced to 5 Years for Insider Trading
Staff Writer - REUTERS

The New York Times. February 25, 2009
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EXCERPT: A former trader who admitted to participating in an insider-trading scheme that made millions was sentenced Tuesday to more than five years in prison. David Tavdy, 40, pleaded guilty to conspiracy and securities fraud a year ago after he admitting to buying tips from a former UBS executive who sold him nonpublic information about the bank’s stock recommendations. Mr. Tavdy worked for Assent, a broker-dealer. “I made a mistake, and I regret it,” Mr. Tavdy told Judge Deborah A. Batts of Federal District Court in Manhattan before she sentenced him to 63 months. Mr. Tavdy and the former UBS AG executive, Mitchel S. Guttenberg, were among 13 people charged in 2007 in what authorities then called one of the most pervasive insider trading rings since the 1980s. It included former employees of Wall Street businesses such as the Bank of America Corporation, Morgan Stanley and Bear Stearns. All 13 pleaded guilty. In handing down the sentence, Judge Batts noted that from 2002 to 2006 Mr. Tavdy made “millions of dollars for himself and others by abusing insider information.” She added, “this is not a case of an isolated incident.”

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