Wednesday, September 21, 2011

Fourth Defendant Charged in Insider Trading Scheme Involving Former Citigroup Investment Banker


Source- http://www.fbi.gov/sanfrancisco/press-releases/2011/fourth-defendant-charged-in-insider-trading-scheme-involving-former-citigroup-investment-banker?utm_campaign=email-Immediate&utm_medium=email&utm_source=san-francisco-press-releases&utm_content=32606

SAN FRANCISCO—A federal grand jury in San Francisco charged Bassam Yacoub Salman, 52, of Orland Park, Ill., with conspiracy and securities fraud relating to an insider trading scheme in which he made profits in excess of $1.1 million, United States Attorney Melinda Haag announced.

The indictment, which was unsealed today, stems from the insider trading scheme first charged in 2009 against Maher Fayez Kara, of San Carlos, Calif., a former investment banker at Citigroup Global Markets Inc. in New York; Maher Kara’s brother, Mounir Fayez Kara, also known as Michael F. Kara, of Walnut Creek, Calif.; and Emile Youssef Jilwan, of Pleasanton, Calif.

According to the indictment, Maher Kara misappropriated material, non-public information about confidential corporate acquisitions, financings and other transactions in New York, in violation of his fiduciary duty and duty of trust and confidence to Citigroup and its clients. He then tipped his brother, Mounir Kara, about the confidential transactions. Mounir Kara then tipped Salman, who is charged with trading on the material, non-public information in the securities four publicly traded biotechnology companies from 2005 through 2007.

Citigroup was one of the victims of the charged criminal conduct and has cooperated in the investigation conducted by the United States Attorney’s Office and the Federal Bureau of Investigation.



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