(Adds U.S. prosecutor's statement, details)
By Grant McCool
NEW YORK May 5 A former day trader pleaded
guilty on Tuesday to criminal charges of making $1.5 million
from stock tips he received from a friend who misappropriated
confidential corporate information from his wife, a New York
public relations executive specializing in mergers.
Jamil Bouchareb, 27, who faces up to 25 years imprisonment
on charges of securities fraud and conspiracy charges, told a
Manhattan federal court judge he received tips from former
Lehman Brothers Holdings Inc LEHMQ.PK salesman Matthew
Devlin, who pleaded guilty to insider trading charges last
Dec. 16, passed on stock trading tips without the knowledge of
his wife, Nina Devlin, a public relations executive
specializing in mergers and acquisitions with the Brunswick
Group. She has not been charged in the case.
Bouchareb, of Miami Beach, Florida and Devlin are among
five men charged criminally in the insider trading scheme that
raked in a total of about $4.8 million in profits between March
2004 and July 2007.
"He (Devlin) gave me recommendations, I traded on them,"
Bouchareb told U.S. magistrate judge Debra Freeman at Tuesday's
hearing. "There was a point when I realized some of the
information was coming from his spouse."
In a statement in December, Nina Devlin's lawyer James
Benjamin said: "She was completely unaware that confidential
information about her job was being used as the basis for
U.S. prosecutors said in a statement that Bouchareb
obtained confidential information about six mergers and
acquisitions from Matthew Devlin. It said the co-conspirators
referred to Nina Devlin as "the Golden Goose" and she expected
her husband to keep her confidences.
Court documents showed the government accused the ring of
illegal trades in 13 impending mergers or transactions,
including Novartis AG NOVN.VX acquiring Eon Labs in 2005 and
Alcoa Inc's (AA.N) hostile offer for Alcan in 2007.
The cases are USA v Devlin et al 08-mag-2777/78/79 and U.S.
Securities and Exchange Commission v Devlin et al in U.S.
District Court for the Southern District of New York
(Reporting by Grant McCool; Editing by Andre Grenon and Tim