Former Ernst & Young partner found guilty of insider trading
New York-based lawyer passed news of forthcoming buyouts to a friend
A former Ernst & Young partner in New York has been found guilty of
insider trading after he passed information about proposed buyouts on to a
James Gansman worked as a lawyer in E&Y’s transaction division and
advised companies on human resources issues arising during mergers and
Between May 2006 and July 2007, Gansman passed information about seven
forthcoming takeovers to his friend Donna Murdoch who it to trade shares, making
a profit of nearly $400,000.
Murdoch was found guilty of securities fraud on December 15. She then
testified against Gansman, who was found guilty of six counts of securities
fraud. He faces a maximum prison sentence of 20 years and a fine of up to £3.3
million. He is due to be sentenced on October 1.
Gansman resigned from EY in October 2007.