Expert trading by ex-banker'' s daddy becomes focus in U.S. trial

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By Nate Raymond NEW YORK (Reuters) – The relationship between a former Wall Street financial investment banker charged for expert trading and his dad, who traded on information about mergers he found out from him, took spotlight at the start of the son’s trial on Wednesday. Assistant U.S. Attorney Brooke Cucinella informed jurors in Manhattan federal court that suggestions by Sean Stewart, an ex-banker at Perella Weinberg Partners and JPMorgan Chase & & Co (NYSE:-RRB-, enabled his father and another male to make over $1 million trading. “It’s not tough to obtain an A when someone has currently provided you the responses to the test,” Cucinella stated in her opening declaration. But Mark Gombiner, a defense attorney, stated while the dad, Robert Stewart, did illegally trade on information he learned while speaking to his son, Sean Stewart had no idea that his dad was doing so. “He ended up betraying his boy, as he was weak and foolish and selfish,” Gombiner stated. The trial originates from one several insider trading cases pursued by Manhattan U.S. Lawyer Preet Bharara’s office, which has charged 107 individuals considering that 2009. The trial is his office’s very first because suffering a significant problem in 2014, when an appellate court limited the scope of insider trading laws, triggering charges versus 14 people to be dropped or dismissed. Prosecutors contend Sean Stewart, 35, tipped his dad about 5 unannounced health care deals from 2011 to 2014, making it possible for Robert Stewart and an acquaintance, Richard Cunniffe to make $1.16 million. The case has actually currently led to guilty pleas by Robert Stewart, 61, and Cunniffe, 61, who, Cucinella told jurors, worked together with the Federal Bureau of Investigation and secretly taped the elder Stewart talking about the scheme. In one recording, Cucinella stated, Robert Stewart went over how his son had actually been serving him up inside information on a “silver plate.” Sean Stewart kept tipping his daddy even after being questioned by JPMorgan in connection with a regulative questions about trades by his dad prior to the announcement of the 2011 buyout by Apax Partners of Kinetic Concepts Inc [CRGYHK.UL] Gombiner acknowledged his client, fretted about possible repercussions, lied to JPMorgan about telling his daddy anything about that offer. But he stated the investment banker loved his father and trusted him to not carry out trades, which he did amid financial struggles based on names of companies his boy discussed while speaking about his work. “Sean Stewart is absolutely, unequivocally innocent,” he stated. The case is U.S. v. Stewart, U.S. District Court, Southern District of New york city, No. 15-cr-00287.

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