Trader pleads guilty to role in "golden goose" insider dealing ring

7 May 2009

A day trader has become the latest person to plead guilty to illegally trading on stock tips as part of a $4.8 million insider dealing ring.

Jamil Bouchareb faces up to 20 years in prison after admitting securities fraud and conspiracy charges in a New York court, Reuters reports.

He admitted to receiving tip-offs from former Lehman Brothers broker Matthew Devlin, who pleaded guilty in December to misappropriating confidential corporate information from his wife Nina, a public relations executive with the Brunswick Group.

"[Mr Devlin] gave me recommendations, I traded on them. There was a point when I realized some of the information was coming from his spouse," Mr Bouchareb told the court.

When the Securities and Exchange Commission charged Mr Devlin in December, its complaint said his tips were so lucrative that he earned the nickname "the golden goose".

Nina Devlin's lawyer told Reuters she had been "completely unaware" that her husband had been passing on the confidential information about her job. She has not been charged with any wrongdoing.

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