October 18, 2018

Former investment bank employee pleads guilty to securities fraud and insider trading conspiracy

Michael Siva, a broker and financial advisory at an unidentified global investment bank, pleaded guilty to one count of conspiracy to commit securities fraud and fraud in connection with a tender offer for his role in an insider trading scheme that allegedly generated illicit profits in excess of $3 million.  According to the indictment, Daniel Rivas, then a technology consultant in the Research and Capital Markets Technology Group of an investment bank, passed information about potential and unannounced mergers and acquisitions that he allegedly misappropriated from the bank’s internal deal tracking system, to James Moodhe, the father of Rivas’ girlfriend.  Moodhe then passed the information to Siva, his broker, who purportedly knew that the source was a corporate insider at an investment bank.  Both Rivas and Moodhe have also pleaded guilty in the case and are cooperating with the government.

SDNY press release | Indictment