Guttenberg Gets Seventy Eight Months in Federal Prison For Insider Trading
The United States Attorney for the Southern District of New York announced yesterday that Mitchel Guttenberg was sentenced to seventy -eight months in federal prison in connection with his plea of guilty to one count of conspiracy to commit securities fraud and two counts of securities fraud. Guttenberg was also ordered to forfeit close to sixteen million dollars in monies gained through insider trading. Guttenberg was the executive director in the equity research department of UBS Securities LLC. UBS Securities, LLC rated public companies. Many stock market investors used those ratings to decide whether to buy or sell stocks. Guttenberg sold the ratings multiple times to David Tavdy and one other individual before the ratings were released to the general-public. Tavdy and the other individual would buy and sell stock based upon those ratings before the ratings were released to the general-public. This insider trading scheme apparently netted them millions of dollars. David Tavdy also pled guilty to one count of conspiracy to commit securities fraud and two counts of security fraud as result of his involvement with the insider- trading scheme. Tavdy awaits sentencing.
