{"id":83427,"date":"2022-12-16T02:03:58","date_gmt":"2022-12-16T07:03:58","guid":{"rendered":"https:\/\/www.hedgeco.net\/news\/?p=83427"},"modified":"2022-12-16T02:03:58","modified_gmt":"2022-12-16T07:03:58","slug":"sec-charges-financial-services-professional-and-associate-in-47-million-front-running-scheme","status":"publish","type":"post","link":"https:\/\/hedgeco.net\/news\/12\/2022\/sec-charges-financial-services-professional-and-associate-in-47-million-front-running-scheme.html","title":{"rendered":"SEC Charges Financial Services Professional and Associate in $47 Million Front-Running Scheme"},"content":{"rendered":"\n<p>(HedgeCo.Net) The Securities and Exchange Commission today announced fraud charges against <strong>Lawrence Billimek<\/strong>, an employee of a major asset management firm with securities portfolios worth billions of dollars, and <strong>Alan Williams,<\/strong> who previously worked at several financial industry firms, for perpetrating a multi-year front-running scheme that generated at least <strong>$47 million<\/strong> in illegal trading profits.<\/p>\n\n\n\n<p>The SEC\u2019s complaint, filed in federal district court in Manhattan, alleges that, since at least September 2016, Billimek would inform Williams of the asset management firm\u2019s market-moving trades prior to their execution. As the complaint alleges, on the same day, Williams would trade in the same securities prior to Billimek\u2019s employer or while multiple large orders were being placed by the employer. Williams would close his positions after the price of the security moved as expected. This alleged front-running scheme resulted in proceeds of more than $47 million. The SEC staff analyzed trading using the Consolidated Audit Trail (CAT) database to uncover William\u2019s allegedly fraudulent trading and to identify how he profited by repeatedly front-running large trades by Billimek\u2019s employer.<\/p>\n\n\n\n<p>\u201cBillimek allegedly took advantage of his position and abused his employer\u2019s trust by providing Williams with proprietary information that allowed them to gain a trading advantage and pocket tens of millions of dollars in profits,\u201d said Joseph G. Sansone, Chief of the SEC Enforcement Division\u2019s Market Abuse Unit. \u201cAs today\u2019s action shows, SEC staff will utilize data analytics tools at our disposal to find and charge those who engage in illegal trading of securities.\u201d<\/p>\n\n\n\n<p>In a parallel action, the U.S. Attorney&#8217;s Office for the Southern District of New York today announced criminal charges against Billimek and Williams.<\/p>\n\n\n\n<p>The SEC\u2019s complaint charges Billimek and Williams with violating the antifraud provisions of the federal securities laws and seeks disgorgement of ill-gotten gains plus interest, penalties, and injunctive relief.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>(HedgeCo.Net) The Securities and Exchange Commission today announced fraud charges against Lawrence Billimek, an employee of a major asset management firm with securities portfolios worth billions of dollars, and Alan Williams, who previously worked at several financial industry firms, for [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[16,3,16048,16047],"tags":[],"class_list":["post-83427","post","type-post","status-publish","format-standard","hentry","category-hedgeco-networks-press-releases","category-hedgeco-news","category-hedgecovest-news","category-insider-trading-2"],"_links":{"self":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/83427","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/comments?post=83427"}],"version-history":[{"count":1,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/83427\/revisions"}],"predecessor-version":[{"id":83428,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/83427\/revisions\/83428"}],"wp:attachment":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/media?parent=83427"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/categories?post=83427"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/tags?post=83427"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}