Pakistani Banker Accused of Insider Trading
An investment banker from Pakistan has been indicted in an insider trading scheme that allegedly earned him $7.5 million in illegal profits.
Ajaz Rahim of Faysal Bank Limited was indicted on charges of conspiracy and securities fraud, according to the New York Times.
Rahim is accused of trading based on leaked information about pending mergers, according to the Wall Street Journal (sub. req.). Among them was proposed buyout of TXU Corp. by a private-equity group, which allegedly netted $5.1 million for Rahim.
Prosecutors claim Rahim used information provided by an investment banker for Credit Suisse Securities USA whom he had once worked with at American Express.