New York Man Pleads Guilty to Insider Trading

A New York City man pleaded guilty on Tuesday to insider trading and tax evasion, a year after he was accused of trading with sensitive information from a company insider.

Jason Peltz, 39, pleaded in the Brooklyn federal court to counts of insider trading and tax evasion after initially pleading not guilty last year.

Peltz admitted to trading with “material nonpublic information” obtained from a company insider and a financial reporter. The indictment does not name the linked reporter, but media outlets have identified him as Ed Hammond, a Bloomberg News reporter.

Hammond is not accused of any wrongdoing.

The indictment said that Peltz bought securities in chemical manufacturer Ferro Corporation based on insider information he obtained from a friend about the firm’s takeover offer. 

Peltz also allegedly tipped other traders about the transaction and told Hammond who used the information to write an article that publicized the news.

“It’s illegal to use non-public information to buy and sell stocks. Doing so manipulates the markets and can have detrimental effects on the wallets of individuals who play by the rules,” said an IRS agent in a statement.

“But this defendant didn’t stop there, he made significant financial gains and then claimed that he had no income in an effort to blatantly evade taxes.”

Peltz is scheduled to be sentenced in July and is facing up to 25 years in prison.

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