A former Ernst & Young (R&Y) partner together with an investment banker were charged in US District Court in Manhattan with conspiracy to commit securities fraud and 11 counts of securities fraud.

James Gansman, the former E&Y partner, and Donna Murdoch, the investment banker, were accused of joining a scheme to trade illegally on seven separate potential merger and acquisition transactions which involved E&Y clients, Forbes magazine reports

Prosecutors said Gansman provided tips and Murdoch used them to trade securities in personal accounts, earning more than $390,000 in profits.

The illegal trades allegedly took place between May 2006 and December 2007, while Murdoch was working as a consultant and an investment banking managing director at a broker-dealer and investment and financial services company.

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