FORMER MIAMI BEACH DAY TRADER PLEADS GUILTY IN MANHATTAN FEDERAL COURT TO INSIDER TRADING CHARGES

United States Attorney
Southern District of New York
FOR IMMEDIATE RELEASE CONTACT: U.S. ATTORNEY’S OFFICE
MAY 16, 2011 ELLEN DAVIS, CARLY SULLIVAN,

PREET BHARARA, the United States Attorney for
the Southern District of New York, announced that DANIEL A.
CORBIN, a day trader from Miami Beach, Florida, pled guilty today
to conspiracy and securities fraud charges arising from a scheme
in which he obtained and traded on material, nonpublic
information. CORBIN pled guilty before U.S. Magistrate Judge
HENRY B. PITMAN.
Manhattan U.S. Attorney PREET BHARARA said: “Daniel
Corbin thought he had a golden source for inside tips and traded
on the information he received with impunity. He played a high
risk and high stakes game, and it caught up with him in the end.”
According to the Information, a Superseding Indictment,
previously filed Complaints, and statements made during today’s
guilty plea proceeding:
From February 2005 through September 2008, CORBIN
obtained material, nonpublic information (“Inside Information”)
from JAMIL BOUCHAREB. BOUCHAREB obtained the Inside Information
about several mergers and acquisitions of public companies, and
traded on it to the benefit of both himself and CORBIN. The
Inside Information was provided by MATTHEW DEVLIN, who got it
from his wife, an employee at an international communications
firm. The Inside Information related to mergers and acquisitions
deals that his wife’s company was working on. Instead of keeping
it confidential, DEVLIN passed the information to BOUCHAREB, who
in turn delivered it to CORBIN. After discussing it with each
other, BOUCHAREB executed the trades. Specifically, in September
2006, BOUCHAREB, after consulting with CORBIN, caused 2,500
shares of stock in Veritas DCG Inc. (“Veritas”) to be purchased
in advance of Veritas’s acquisition by another company for the
benefit of BOUCHAREB and CORBIN’s joint account. In exchange for
some of the Inside Information, CORBIN and BOUCHAREB paid DEVLIN
thousands of dollars in cash and provided him with other valuable
gifts.
* * *
CORBIN, 35, pled guilty to one count of securities
fraud based on his trading in Veritas, and one count of
conspiracy. The conspiracy count carries a maximum sentence of
five years in prison, and the securities fraud count carries a
maximum sentence of 20 years in prison. CORBIN faces a total
maximum sentence of 25 years’ imprisonment on both counts. He
also faces a maximum fine of $250,000, or twice the gross gain or
loss from the offense on the conspiracy count and a maximum fine
of $5 million on the securities fraud count. CORBIN agreed, as
part of his plea agreement, to forfeit $1,000,000 in proceeds
from the insider trading.
He is scheduled to be sentenced by U.S. District Judge
VICTOR MARRERO on August 19, 2011, at 1:30 p.m.
DEVLIN and BOUCHAREB previously pled guilty to
conspiracy and securities fraud charges.
Mr. BHARARA praised the work of the Federal Bureau of
Investigation and thanked the SEC for its assistance in the
investigation of this case.
This case was brought in coordination with President
BARACK OBAMA’s Financial Fraud Enforcement Task Force, on which
Mr. BHARARA serves as a Co-Chair of the Securities and
Commodities Fraud Working Group. President OBAMA established the
interagency Financial Fraud Enforcement Task Force to wage an
aggressive, coordinated, and proactive effort to investigate and
prosecute financial crimes. The task force includes
representatives from a broad range of federal agencies,
regulatory authorities, inspectors general, and state and local
law enforcement who, working together, bring to bear a powerful
array of criminal and civil enforcement resources. The task
force is working to improve efforts across the federal executive
branch, and with state and local partners, to investigate and
prosecute significant financial crimes, ensure just and effective
punishment for those who perpetrate financial crimes, combat
discrimination in the lending and financial markets, and recover
proceeds for victims of financial crimes.
Assistant U.S. Attorneys EUGENE INGOGLIA and MARISSA
MOLÉ are in charge of the prosecution.
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