Ex-UBS New York-based investment banker Igor Poteroba received a 22 month jail term Monday, after pleading guilty to insider trading charges late last year.
Poteroba, 37, a healthcare banker, admitted tipping off friend Aleksei Koval to details of information on six non-public M&A deals between 2005 and February 2009, which are said to have resulted in over $1m in illegal profits.
The banker told the judge before sentencing: 'I made some very bad mistakes and made some very bad decisions. I lost my moral compass. I'm deeply ashamed of my actions and my irresponsible conduct'. He was also fined $25,000, and had previously agreed to forfeit $465,000 of his illicit profits as part of his plea bargain. Poteroba, a Russian citizen, is thought likely to be deported after completing his sentence.
Poteroba and Koval, who will be sentenced at the end of May, communicated by means of coded e-mails. One is alleged to have said: 'Let me know if you finished your recent harvest arrangements, and how many kilos are available for my parents. They are in Turkey now and could use some once they are back'.
Sources - Reuters, The Financial Times, The Wall Street Journal