WSJ – A series of phone calls between a Deutsche Bank AG bond salesman and a hedge fund trader has landed the two men at the center of a courtroom test of how far federal regulators can go in pursuing insider trading.
Jon-Paul Rorech, the salesman, was teeing up buyers for a bond offering for a unit of Dutch publisher VNU. In a call to portfolio manager Renato Negrin, he suggested that derivatives contracts based on the bonds could soar in value, regulators say. Mr. Negrin, they say, bought a huge trading position, reaping a $1.2 million profit.
