Four brokers accused of illegal stock trading

08/16/05 - newratings.com

NEW YORK, August 16 (newratings.com) – The US Justice Department and SEC have accused four former brokers of Citigroup (C), Lehman Brothers (LEH) and Merrill Lynch (MER) of having been involved in illegal stock trading practices.

According to an indictment in the Brooklyn District Court on Monday, the US Justice Department and SEC accused brokers Ralph Casbarro, David Ghysels, Kenneth Mahaffy and Timothy O'Connell of securities fraud, conspiracy and receiving commercial bribes. The four brokers have also been accused of selling access to their respective banks' "squawk boxes," which contain information on orders placed by big and institutional investors. US Attorney Roslynn Mauskopf said that the brokers sold confidential information of their respective banks to "unscrupulous day traders," ignoring the interests of their banks and the clients of their banks.