Ex-Morgan Stanley financial adviser pleads guilty in insider trading case
An ex-Morgan Stanley broker pleaded guilty to insider trading. The former trader was charge for allegedly tipping a childhood friend to Gilead Sciences Inc's plan in 2011 to acquire Pharmasset Inc. The trader disclosed the information three days prior the USD11.2 billion takeover was announced. This was according to court and regulatory records.
Kevin Dowd pleaded guilty to conspiracy to commit securities fraud before US District Judge Anne Thompson in Trenton, New Jersey last Monday.
Dowd would face up to five years in prison and was ordered to pay USD250000 fine when he would be sentenced on January 15, 2014. His plea was announced in New Jersey by US Attorney Paul Fishman.
Dowd's lawyer, Peter Willis, did not immediately respond to a request for comment.
Dowd learned about the merger from a Pharmasset director. The said director had been the biggest customer of the Aventura Florida branch where the ex-trader formerly worked.