A former risk manager at Nomura’s Americas division in Manhattan pleaded guilty to securities fraud, admitting he traded last year using inside information about a private equity fund’s planned takeover of a technology company.
Bloomberg News reports that Avaneesh Krishnamoorthy was accused in April of reaping about $48,000 from trades in the analytics firm NeuStar Inc. after learning Golden Gate Capital planned to buy it. Krishnamoorthy snapped up hundreds of NeuStar shares through an undisclosed brokerage account the day after Nomura circulated a confidential email about the deal, which it helped finance.
"I knew what I was doing was wrong," said Krishnamoorthy, 42, in Manhattan federal court before apologizing to his family, which wasn’t present. He wore a dark suit and spoke softly with his head lowered.
Krishnamoorthy faces a maximum sentence of 20 years behind bars, though he’s likely to serve far less as a result of the plea agreement with prosecutors. U.S. District Judge Jesse Furman set a sentencing hearing for Nov. 21, saying Krishnamoorthy can’t appeal a sentence of less than 16 months.