March 9, 2016-
Jay Fung, 42, of Delray Beach, FL, pleaded guilty to an information which charged him with conspiracy to commit securities fraud . Fung admitted to an insider trading scheme involving Gilead Science’s $11 billion acquisition of Pharmasset, Inc.
According to Reuters, former stock broker Kevin Dowd learned of the upcoming merger from a Pharmasset director who was the largest customer in Dowd’s branch. Dowd then tipped off Fung about the upcoming merger three days before it was announced in November 2011. Fung purchased Pharmasset shares and options prior to the public announcement which generated illegal profits in excess of $250,000.
Dowd pleaded guilty in September 2013 to a criminal conspiracy charge. Kevin L. Dowd was registered with Morgan Stanley in Aventura, FL, form 6/2009-1/2014, according to FINRA records.
Fung faces up to five years in the sentencing which is set for June 20, 2016.
Rex Securities Law , with offices in Boca Raton, FL, and Austin, TX, provides representation to investors nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.
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