Florida Man Sentenced For $2 Million Insider Trading Scheme Based On Confidential Information

Florida Man Sentenced For $2 Million Insider Trading Scheme Based On Confidential Information Misappropriated From An Investment Bank


Geoffrey S. Berman, United States Attorney for the Southern District of New York, announced today that RODOLFO SABLON, a/k/a “Rudy,” was sentenced to six months in prison for his role in an insider trading scheme based on material nonpublic information misappropriated from an investment bank by Daniel Rivas, a former employee at the bank. In July 2018, SABLON pled guilty to conspiracy to commit securities fraud and fraud before U.S. Magistrate Judge Debra Freeman. U.S. District Judge Alison J. Nathan imposed today’s sentence.

U.S. Attorney Geoffrey S. Berman said: “Today’s sentencing of Rodolfo Sablon closes the book on this multimillion-dollar, multi-pronged insider trading scheme. Sablon and his co-defendants acted as though the securities laws that are designed to keep our nation’s marketplace fair did not apply to them. However, as they all have learned, our office is committed to identifying and prosecuting these types of insider trading networks.”

According to the allegations contained in the Indictment filed against SABLON and his co-conspirators, and statements made in related court filings and proceedings:

The Investment Bank and Rivas

From August 2013 through May 2017, Rivas was employed as a technology consultant in the Research and Capital Markets Technology Group of an investment bank (the “Investment Bank”). In this role, Rivas had access to an internal, proprietary system maintained by the Investment Bank (the “Deal Tracking System”) containing material nonpublic information (“Inside Information”) about potential and unannounced merger and acquisition transactions, including tender offers, involving the Investment Bank. The Investment Bank’s written policies prohibited the unauthorized disclosure of confidential information, which included Inside Information. Rivas had a duty, among other obligations, to maintain the confidentiality of all of the Investment Bank’s confidential information, including the Inside Information.

Read more: https://www.justice.gov/usao-sdny/pr/florida-man-sentenced-2-million-insider-trading-scheme-based-confidential-information