Rogue Traders, Insider Traders & Others

The Times reports that 31-year-old Jonathan Bunn appeared at Southwark Crown Court last week and admitted that he had falsifying documents after sustaining an unauthorised trading loss of $3.9m shorting HSBC shares.

The broker, who worked at Lewis Charles Securities, wasn't even authorised to make proprietary trades, and now faces up to 7 years in prison.

In the meantime, The Financial Times reports that Mark Kurland, the founder of hedge fund New Castle Funds, was sentenced to 27 months in prison Friday, after admitting his involvement in an insider trading ring allegedly orchestrated by Galleon hedge fund founder Raj Rajaratnam.

Kurland told the court: 'I knew better than to do something of this nature, but failed to stop'. He is due to report to prison in July.

And Bloomberg reports that Mark Zaino, who worked in UBS's US municipal-bond and derivatives trading unit from 2001 to 2006, has pleaded guilty to conspiracy 'to rig bids and pay state and local governments below-market returns on investment deals'.

The news agency also reports that Anjam Ahmad has become the first person to enter a guilty plea for insider trading in a case brought by UK securities regulator The Financial Services Authority. Ahmad, 39, entered a guilty plea at Southwark Crown Court last week to one count of conspiracy to commit insider trading relating to deals involving 22 companies.

The Associated Press reports that Terry Scott Welch, a former Wachovia VP, is facing federal charges that he conspired with clients of the bank to scam $11m from the firm. The alleged scam, which went on for 9 years, is thought to have involved the payment of false invoices submitted by clients, who were also acting as outside vendors.

Finally, Reuters reports that US federal prosecutors are not expected to bring charges against Joe Cassano, the former head of AIG Financial Products, the trading unit that was primarily responsible for the fall of AIG itself. After a two year investigation, The US Justice Department has been unable to establish wrongdoing on his part.

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