Ex-Ernst & Young partner guilty of insider trading

19 May 2009

A former partner with accounting firm Ernst & Young has been found guilty of insider dealing after he passed tip-offs on multi-billion dollar merger and acquisition deals to a friend.

James Gansman had been a lawyer with E&Y's transaction arm, which advises firms on HR issues linked to takeover deals, the Times reports.

Between May 2006 and July 2007, he passed privileged details about seven upcoming mergers to his friend Donna Murdoch, who traded shares on the back of the information to make a profit of approximately $40,000 (£26,164).

Ms Murdoch, who pleaded guilty to 15 counts of securities fraud in December, testified against Mr Gansman during his trial in New York. She will be sentenced in June.

The former consultant, who resigned from E&Y in October 2007, was convicted on six counts of securities fraud. He faces a maximum sentence of 20 years in prison and a fine of up to $5 million on each count.

Sentencing for Mr Gansman has been set for October 1st.

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