Married Ex-Analysts Plead Guilty in Insider Trading Case
A husband and wife admitted Wednesday that they used confidential information she gained from her job at the Morgan Stanley financial services company to make $600,000 in profit trading stocks.
Jennifer Wang and her husband, Rubin Chen, entered guilty pleas to one count of conspiracy to commit securities fraud and three counts of insider trading in U.S. District Court in Manhattan.
As part of a plea agreement with prosecutors, the Englishtown, N.J., couple agreed they will not appeal any prison sentence between 2 1/2 and 3 years.
Sentencing was set for Dec. 7.
During her plea, Wang, 31, described giving her husband information about three pending acquisitions in 2005 and 2006, enabling him to buy stock in a brokerage account set up in her mother's name ahead of the public announcement of the deals.
"I feel deeply sorry for my conduct and want to apologize to your honor, the government and the people I hurt the most, including my family," Wang told Judge Colleen McMahon.
Wang said she committed the crimes while working for Morgan Stanley between 2005 and 2007 as a vice president and financial analyst in its financial department, where she had access to confidential information regarding pending deals.
She said she knew that her actions violated federal law and reneged on promises she had made to Morgan Stanley about keeping nonpublic information about clients confidential.
She said she tipped Chen, 34, to a pending deal in December 2005 after reading an e-mail about a transaction under way between Morgan Stanley and one of its clients.
At the time, her husband worked as a financial analyst at ING Investment Management Americas, a hedge fund in Manhattan.
Prosecutors said the couple made $600,000 on the trades, which were discovered during a probe by the Securities and Exchange Commission and internal investigations by Morgan Stanley and ING.
Without the plea deal, the couple, each free on $2 million bail, could have faced up to 65 years each in prison.