SEC wins trial against former broker on insider trading charges
Raymond J. Pirrello Jr. part of group that shared illicit trading profits
Jurors in Atlanta federal court have found former New Jersey broker Raymond J. Pirrello Jr. liable for insider trading in advance of three merger and acquisition transactions.
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Evidence in the case brought by the Securities and Exchange Commission showed that Mr. Pirrello received highly confidential nonpublic information about the impending acquisitions of Radiant Systems, Midas Incorporated, and BrightPoint from Thomas W. Avent Jr., who performed tax work on each transaction as a partner at an international accounting firm. Mr. Pirrello, in turn, tipped his former colleague and long-time friend Lawrence J. Penna Jr., who traded in the securities of each of the three companies.
According to evidence presented during the trial, Mr. Penna and his family made at least $107,922 in illicit trading profits, and shared at least $21,500 of these profits with Mr. Pirrello.
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