Prosecutors crack down on “criminal club” insider-trading scheme

Former Whittier Trust analyst Danny Kuo is the fourth member to plead guilty

Sometimes joining a club isn’t the best idea—at least when the premise isn’t exactly legal. Last Friday, federal prosecutors announced that a fourth member of a “criminal club” of inside traders has pled guilty to criminal charges.

Danny Kuo, formerly a vice president at Whittier Trust Co., admitted his guilt in Manhattan federal court before U.S. District Judge Richard Sullivan. He described his involvement in a group of investment professionals—analysts and portfolio managers at various hedge funds and investment firms—who pooled nonpublic information about technology companies and either personally traded on it or passed it on to others at their firms.

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