<span id="midArticle_start"/><span id="midArticle_0"/> A managing director at aboutique investment bank has agreed to cooperate withprosecutors at an insider trading case involving a formerPerella Weinberg Partners employee accused of passing stock tipsto his father, according to court records.
<span id="midArticle_1"/>Richard Cunniffe, who worked at Chatsworth Securities LLC inGreenwich, Connecticut, secretly pleaded guilty on May 12 inManhattan federal court to charges including securities fraud,records show.
<span id="midArticle_2"/>Prosecutors say he has been cooperating since March 12 in aninvestigation that led to charges last month against SeanStewart, a former managing director at investment bank PerellaWeinberg Partners, and his father, Robert Stewart.
<span id="midArticle_3"/>Prosecutors had already revealed they secured a guilty pleafrom a cooperating witness who engaged in recorded conversationswith Robert Stewart about the alleged scheme.
<span id="midArticle_4"/>But at the time charges were unveiled May 14, Cunniffe'sname remained secret. Asked on Thursday, representatives forManhattan U.S. Attorney Preet Bharara confirmed his identity.
<span id="midArticle_5"/> <span class="first-article-divide"/>Kevin Kearon, Cunniffe's lawyer, confirmed the guilty pleaoccurred but declined further comment.
<span id="midArticle_6"/>Prosecutors say Sean Stewart routinely tipped his fatherabout mergers being worked on at Perella and JPMorgan Chase & Co, where he worked until 2011.
<span id="midArticle_7"/>At JPMorgan, those mergers included INC Research HoldingsInc's 2011 acquisition of Kendle International Inc andApax Partners' buyout that year of Kinetic Concepts Inc.
<span id="midArticle_8"/> <span class="second-article-divide"/>At Perella Weinberg, the deals included Hologic Inc's 2012 acquisition of Gen-Probe Inc, Linde AG's purchase of Lincare Holdings Inc that year, and Becton,Dickinson & Co's deal for CareFusion Corp in October.
<span id="midArticle_9"/>Authorities said Robert Stewart traded on the tips and,after a regulator began inquiring into Kinetic Concepts trading,arranged to have Cunniffe make trades in exchange for some ofthe profits.
<span id="midArticle_10"/>In total, the scheme enabled Robert Stewart and Cunniffe tomake $1.16 million, according to a criminal complaint.
<span id="midArticle_11"/> <span class="third-article-divide"/>Lawyers for the Stewarts declined comment on Thursday.
<span id="midArticle_12"/>A related lawsuit by the U.S. Securities and ExchangeCommission described Cunniffe as having spent almost his entirecareer in the securities industry and having been a close friendof Robert Stewart.
<span id="midArticle_13"/>Records maintained by Financial Industry RegulatoryAuthority list a single person by Cunniffe's name, who had thesame licenses as the individual the SEC described and wasregistered until April with Chatsworth.
<span id="midArticle_14"/>A Chatsworth executive did not respond to a request forcomment.
<span id="midArticle_15"/>The cases in U.S. District Court, Southern District of NewYork, are U.S. v. Stewart, 15-mj-1634, and U.S. v. Cunniffe, No.15-cr-287. (Reporting by Nate Raymond in New York; Editing by DavidGregorio)
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<span id="midArticle_1"/>Richard Cunniffe, who worked at Chatsworth Securities LLC inGreenwich, Connecticut, secretly pleaded guilty on May 12 inManhattan federal court to charges including securities fraud,records show.
<span id="midArticle_2"/>Prosecutors say he has been cooperating since March 12 in aninvestigation that led to charges last month against SeanStewart, a former managing director at investment bank PerellaWeinberg Partners, and his father, Robert Stewart.
<span id="midArticle_3"/>Prosecutors had already revealed they secured a guilty pleafrom a cooperating witness who engaged in recorded conversationswith Robert Stewart about the alleged scheme.
<span id="midArticle_4"/>But at the time charges were unveiled May 14, Cunniffe'sname remained secret. Asked on Thursday, representatives forManhattan U.S. Attorney Preet Bharara confirmed his identity.
<span id="midArticle_5"/> <span class="first-article-divide"/>Kevin Kearon, Cunniffe's lawyer, confirmed the guilty pleaoccurred but declined further comment.
<span id="midArticle_6"/>Prosecutors say Sean Stewart routinely tipped his fatherabout mergers being worked on at Perella and JPMorgan Chase & Co, where he worked until 2011.
<span id="midArticle_7"/>At JPMorgan, those mergers included INC Research HoldingsInc's 2011 acquisition of Kendle International Inc andApax Partners' buyout that year of Kinetic Concepts Inc.
<span id="midArticle_8"/> <span class="second-article-divide"/>At Perella Weinberg, the deals included Hologic Inc's 2012 acquisition of Gen-Probe Inc, Linde AG's purchase of Lincare Holdings Inc that year, and Becton,Dickinson & Co's deal for CareFusion Corp in October.
<span id="midArticle_9"/>Authorities said Robert Stewart traded on the tips and,after a regulator began inquiring into Kinetic Concepts trading,arranged to have Cunniffe make trades in exchange for some ofthe profits.
<span id="midArticle_10"/>In total, the scheme enabled Robert Stewart and Cunniffe tomake $1.16 million, according to a criminal complaint.
<span id="midArticle_11"/> <span class="third-article-divide"/>Lawyers for the Stewarts declined comment on Thursday.
<span id="midArticle_12"/>A related lawsuit by the U.S. Securities and ExchangeCommission described Cunniffe as having spent almost his entirecareer in the securities industry and having been a close friendof Robert Stewart.
<span id="midArticle_13"/>Records maintained by Financial Industry RegulatoryAuthority list a single person by Cunniffe's name, who had thesame licenses as the individual the SEC described and wasregistered until April with Chatsworth.
<span id="midArticle_14"/>A Chatsworth executive did not respond to a request forcomment.
<span id="midArticle_15"/>The cases in U.S. District Court, Southern District of NewYork, are U.S. v. Stewart, 15-mj-1634, and U.S. v. Cunniffe, No.15-cr-287. (Reporting by Nate Raymond in New York; Editing by DavidGregorio)
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