Former Vice President of Silicon Valley Financial institution Will Plead Responsible to Insider Buying and selling – CBS San Francisco
SAN JOSE (CBS SF) – A former vice president of Silicon Valley Bank agreed to plead guilty to two securities fraud cases on Wednesday, the same day that both the U.S. Attorney’s Office and the Securities and Exchange Commission filed indictments were.
Mounir Gad, a 34-year-old San Jose resident, was charged with separate criminal and civil cases along with a friend – Nathan Guido, 38, of San Jose – according to separate press releases from acting U.S. Attorney Stephanie M. Hinds and the S. .
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The SEC also announced on Wednesday that it had reached agreements with every man.
Authorities said Gad’s job was helping private equity firms finance corporate acquisitions, and Gad gave Guido three tips on upcoming acquisitions.
Guido bought shares in the target companies and then sold them after the acquisitions were announced, resulting in a profit of $ 51,700, of which he shared $ 11,000 with Gad, SEC officials said.
Both Gad and Guido made an innocent confession in federal court in San Francisco on Wednesday, but Gad admitted to the court that he had signed an agreement with federal prosecutors that would change his plea for guilty. A change to the hearing in U.S. District Court Judge Lucy Koh is scheduled for August 4th.
Guido admitted to the court that he signed an agreement with the federal prosecutor’s office that the government will suspend his prosecution if he meets the terms of the agreement.
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If the case goes to court, Gad and Guido face up to 20 years in prison and a fine of $ 5 million per charge if convicted.
The US Department of Justice did not disclose the terms of the agreements the men signed.
However, in the separate civil case, SEC officials said the men agreed to pay civil penalties as part of their settlement.
Gad agreed to pay $ 51,700 and Guido agreed to pay $ 40,700.
The SEC orders found that Gad and Guido had violated the anti-fraud and offering provisions of the Securities Exchange Act of 1934.
“Gad was required to keep information about his company’s customer business confidential,” said Erin Schneider, director of the SEC’s regional office in San Francisco. “He has abused that trust by allegedly sharing information with Guido who has used it unfairly to benefit from market-moving news.”
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