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New York man admits to insider trading, after being linked to reporter’s tips -Breaking

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© Reuters.

(Corrects headline without any changes to the text

By Luc Cohen

NEW YORK, (Reuters) -A man from New York City pleaded guilty Tuesday to tax evasion and insider trading charges. This comes a year after prosecutors said he used information obtained by Bloomberg News about trade deals.

Jason Peltz (39) entered the plea at Brooklyn Federal Court to two charges of insider trading. He did so one year after his initial plea not guilty. According to court records, he was involved in plea negotiations since at most September 2021.

Breon Peace (the U.S. Assistant for the Eastern District of New York) stated that traders seeking to cheat the system and harm the investors will be aggressively pursued by the office.

Peltz was charged by the federal grand jury with trading in “materially nonpublic information” obtained through a financial reporter and an insider at the company.

Although the journalist and media outlet are not named in the indictment, Reuters and other outlets identified Ed Hammond as a Bloomberg deals reporter in New York based upon a review the articles in the indictment. Hammond has not been accused of any wrongdoing.

Although a Bloomberg spokesperson did not respond immediately to Reuters’ request for comment Tuesday afternoon, she previously stated that Ed Hammond was a highly accomplished reporter. There are no facts that would suggest any wrongdoing by him.

According to the indictment, this scheme was active from November 2015 through October 2020.

Peltz stated that he bought securities in Ferro Corp (NYSE:) Corp based upon information he received from a friend that Ferro had accepted a takeover bid. According to him, he was aware that trading on this information is illegal.

The indictment states that Peltz was not only accused of the Ferro transaction but also had several conversations over months with the reporter, where he obtained non-public material about articles that the reporter was writing regarding other companies.

The indictment mentioned articles that cited multiple sources as well as two to three reporters.

Peltz is due to be sentenced July.

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