NEW YORK, April 24 An investment banking vice
president and risk management specialist was criminally charged
on Monday with insider trading in Neustar Inc before the
advertising technology company agreed to be acquired by a
private equity firm.
Avaneesh Krishnamoorthy, an Indian citizen living in West
New York, New Jersey, made about $48,000 trading Neustar stock
and options in a brokerage account held by him and his wife,
after learning that Golden Gate Capital was in talks to buy the
company, court papers show.
Shares of Neustar rose 21 percent last Dec. 14 after Golden
Gate's takeover of the Sterling, Virginia-based company for
about $2.9 billion including debt.
Krishnamoorthy's employer was not identified in court
papers, but according to LinkedIn a person sharing his name
works as a market risk manager for Nomura Holdings Inc.
In a related civil complaint, the U.S. Securities and
Exchange Commission said the employer had been registered with
the commission as a broker-dealer since 1969 and as an
investment adviser since April 2012.
That description matches data for Nomura from the SEC
Krishnamoorthy, 41, faces one criminal count of securities
fraud, and a maximum 20 years in prison if convicted.
A federal public defender who appeared with Krishnamoorthy
at a hearing in Manhattan declined to comment. The office of
Acting U.S. Attorney Joon Kim in Manhattan also declined to
comment, as did a Nomura spokeswoman.
The criminal insider trading case is the first announced by
Kim since his predecessor Preet Bharara, who brought many such
cases, was fired by U.S. President Donald Trump on March 11.
The cases are U.S. v. Krishnamoorthy, U.S. District Court,
Southern District of New York, No. 17-mag-03002; and SEC v.
Krishnamoorthy in the same court, No. 17-02953.
(Reporting by Jonathan Stempel in New York; Additional
reporting by Nate Raymond in Boston; editing by Grant McCool)