SEC, DOJ charge traders with fraud in $47M front-running scheme
An equity trader unlawfully disclosed inside, nonpublic information about upcoming trades and fed it to a retired professional trader, resulting in $47 million in illegal gains, the Securities and Exchange Commission (SEC) said in announcing fraud charges against the pair Wednesday.
In a parallel action, the Department of Justice (DOJ) is pursuing criminal charges against the duo: Lawrence Billimek, an equity trader who since 2012 has worked for an asset manager in New York that handles about $283 billion in client funds, and day trader Alan Williams.
Williams, 77, is a retired head equity trader who last worked at a large firm. He had been working in the securities industry since 1971.