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U.S. authorities have charged eight individuals, including a former investment banker at Moelis & Co., in a sophisticated international insider trading scheme that allegedly generated tens of millions of dollars in illegal profits. The charges, unsealed in Manhattan federal court, highlight a continued crackdown on illicit trading activities spanning multiple countries.
The central figure, Telemaque Panayotopoulos, is accused of leaking confidential, non-public information about pending corporate mergers he learned of while working in the investment bank's London office. According to prosecutors from the Southern District of New York, Panayotopoulos allegedly tipped off a network of friends and associates, including professional securities traders in the United Kingdom, Switzerland, and Israel. The group is accused of using burner phones and encrypted messaging apps to communicate and conceal their activities.
The illicit trades allegedly involved securities of companies like Array BioPharma and The Medicines Company just before their acquisition announcements became public. Federal prosecutors announced charges against the international group, which included George Nikas, a U.K.-based trader. In a parallel civil lawsuit, the U.S. Securities and Exchange Commission (SEC) stated the conspiracy yielded significant illegal gains by trading on the stolen information. This case follows other successful prosecutorial efforts, including the recent extradition and guilty plea of an Israeli securities trader connected to related schemes.
The operation involved significant coordination between the FBI and international law enforcement. Several arrests have been made, though some defendants, including Panayotopoulos, reportedly remain at large. This enforcement action underscores a strengthened regulatory focus on combating cross-border fraud and preserving market integrity. The defendants face multiple counts of securities fraud and conspiracy, which carry the possibility of substantial prison sentences if they are convicted.
