Florida man gets six months for insider trading

A Florida man has been sentenced to six months behind bars for his role in an insider trading scheme involving information stolen by an investment bank employee.

A U.S. district court judge has sentenced Rodolfo “Rudy” Sablon of Miami to six months in prison after he pled guilty to fraud and conspiracy to commit securities fraud last July. Sablon was also sentenced to two years of supervised release, ordered to pay US$923,566 in forfeiture and a US$5,000 fine.

According to U.S. authorities, Sablon was part of a chain of people who passed along insider tips gleaned from Daniel Rivas, a former investment bank employee, who allegedly accessed non-public information about possible merger activity from his firm’s systems.

Trading on that information generated more than US$5 million in illicit profits, according to authorities.

“Today’s sentencing of Rodolfo Sablon closes the book on this multimillion-dollar, multi-pronged insider trading scheme,” said U.S. attorney for the Southern District of New York Geoffrey Berman.

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.