Seven individuals, including the Blackstone Group's Ramesh Chakrapani and Nicos Stephanou of UBS Investment Bank, have been charged by the Securities and Exchange Commission (SEC) with running an insider trading ring that netted over $11.6 million in illicit profits and avoided losses.
According to the regulator's complaint, Mr Chakrapani and Mr Achilleas - who both worked as mergers and acquisitions specialists - passed privileged information to five associates, including Jefferies Group portfolio manager Joseph Contorinis, concerning a trio of impending takeover deals.
The SEC named the other beneficiaries of the tip-offs as Mr Stephanou's father, Achilleas, his former classmate mate George Paparrizos, Mr Paparrizos's father Konstantinos and a long-time family friend, Michael G. Koulouroudis.
In addition to the SEC's civil complaint, criminal charges have also been filed against Nicos Stephanous, George Paparrizos, Mr Contorinis and Mr Koulouroudis.
Scott Friestad, deputy director of the SEC's enforcement division, said: "As [these] actions demonstrate, we are aggressively working to combat insider trading wherever it occurs and whoever is involved."
In January, Mr Chakrapani was charged with insider trading involving the takeover of the supermarket chain Albertson's, Reuters noted.
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