For at least a year, Michael A. Lucarelli, an employee at an investor relations agency in New York, reaped huge rewards in the stock market. Now, his gains have become a publicity nightmare.
The New York Times reports that Lucarelli, the director of market intelligence at Lippert/Heilshorn and Associates, was arrested and charged with 13 counts of insider trading for buying and selling stocks based on information in news releases his company had prepared for its clients, the F.B.I. and Preet Bharara, the United States attorney in Manhattan, said in a statement.
'Instead of doing his job, Lucarelli spent his days setting up brokerage accounts to make illegal trades using inside information from unwitting clients,' George Venizelos, the F.B.I. assistant director in charge of the New York field office, said in a statement. The suspected insider trades yielded Lucarelli at least $538,215 in profits, the government contends.
If convicted, Lucarelli faces up to 20 years in prison for each of the 13 counts and a fine of up to $5 million per count.
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