On Tuesday, the United States Attorney’s Office in Chicago announced that it had charged a financial analyst and former investment banker with securities fraud for supposedly making profits from trades using non-public information. The defendant, Jason Napodano, is a former Managing Director of a Chicago investment research fund.
The Attorney’s Office accuses Napodano of using non-public information obtained while preparing equity research reports to purchase and sell stocks. The criminal information was filed in a Chicago federal court today. The complaint suggests that Napodano netted roughly $143,000 from the illegal trades.
In a connected case, Bilal Basrai is also accused of using non-public information to earn roughly $37,157 in illegal profits. Basrai and his counsel have agreed to disclose that he has cooperated with the government and intends to plead guilty.
At this point in time, 43-year-old Napodano of Waxhaw, North Carolina is charged with one count of securities fraud. 43-year-old Bilal Basrai of Naperville, Illinois has been charged with the same. Arraignments for the defendants have not yet been scheduled. Securities fraud carries a maximum punishment of up to 20 years in prison.