Lehman broker charged in insider trading case

Business Law

A former Lehman Brothers broker who gleaned tips about pending mergers from his wife, a partner at a high-powered public relations firm, has been charged in a wide-ranging insider trading scheme that earned $4.8 million in profits for several people including a former Playboy model and two lawyers, authorities said.

Federal prosecutors in Manhattan and the Securities and Exchange Commission brought the case Thursday against Matthew C. Devlin, who authorities said enabled clients and friends to make millions of dollars while he was rewarded with gifts including cash, a Cartier watch, a widescreen television and tuition at a Porsche driving school.

"By providing inside information, Devlin curried favor with his friends and business associates and received in return cash, luxury items and other benefits," the SEC said in court papers.

The SEC said those who received tips so treasured the information Devlin took from his wife that they began referring to him and his wife as the "golden goose." Devlin, 35, of Manhattan, also referred to his wife as the "golden goose," the SEC said.

A second ex-Lehman Brothers broker, Frederick Bowers, 40, of Manhattan, was charged in a criminal complaint with conspiracy.

Marc Agnifilo, a lawyer for Bowers, said his client had "a highly minimal role in the alleged insider trading and we're going to fight the case in court and put the government to its proof." He said Bowers had never been in trouble before.

The SEC said Devlin took secrets from March 2004 through last July about more than a dozen pending mergers and acquisitions from his wife, Nina, a partner at Brunswick Group LLC, an international public relations firm.

Attorney Jim Benjamin, who represents Nina Devlin, said her husband obtained the information without her knowledge by being close to her and monitoring her travel schedule.

In a statement, Brunswick Group called the insider trading scheme a "violation of trust between husband and wife." It said there was no indication Matthew Devlin accessed Brunswick's confidential systems.

"We believe she was unaware of her husband's activities and is devastated by these events," the company said, noting that Nina Devlin has not been charged "or implicated in any way."

Brunswick is an international firm that employs more than 400 people, including more than 75 partners, as it advises major companies about financial and corporate communications and opinion research. It has 15 offices in 11 countries.

Related listings

  • Madoff scandal could lead to tax losses nationwide

    Madoff scandal could lead to tax losses nationwide

    Business Law 12/19/2008

    Even Uncle Sam may get burned by Bernard Madoff.Investors who lost their fortunes in Madoff's alleged Ponzi scheme will end up paying far less in taxes and may even be eligible for refunds, according to accounting experts.By some estimates, the Inter...

  • Report: Siemens close to SEC corruption settlement

    Report: Siemens close to SEC corruption settlement

    Business Law 12/11/2008

    Industrial conglomerate Siemens AG is close to reaching a settlement with U.S. and German authorities over its long-standing corruption scandal, daily Sueddeutsche Zeitung reported Thursday.Munich-based Siemens would not comment on the report."We're ...

  • Government unveils plan to rescue Citigroup

    Government unveils plan to rescue Citigroup

    Business Law 11/24/2008

    The government was weighing a plan on Sunday to rescue Citigroup Inc., whose stock has been hammered on worries about its financial health.The Treasury Department and the Federal Reserve have been in discussions over the weekend to devise a strategy ...

New Rochelle, New York Personal Injury Lawyers

If you or a loved one has been injured in an accident, contact Kommer, Bave & Ollman, LLP, in New Rochelle, New York, immediately. We can answer all your questions and work with you to determine if you have the grounds for a personal injury lawsuit. The attorneys at our firm are determined to resolve even the most difficult of cases. We will work closely with you to determine the best course of action to get your claim or case resolved in the most efficient way possible. We will fight for your right to compensation! No one should have to suffer a financial burden from the result of another person’s carelessness. The attorneys at Kommer, Bave & Ollman, LLP will aggressively fight to ensure that justice is served on your behalf.

Business News

New York & New Jersey Family Law Matters We represent our clients in all types of proceedings that include termination of parental rights. >> read