United States Attorney
Southern District of New York
May 16, 2011
Former Miami Beach, Florida, Day Trader Pleads Guilty in Manhattan Federal Court to Insider Trading Charges
NEW YORK – Daniel A. Corbin, a day trader from Miami Beach, Fla., pleaded guilty today to conspiracy and securities fraud charges arising from a scheme in which he obtained and traded on material, nonpublic information, announced U.S. Attorney Preet Bharara for the Southern District of New York. Corbin pleaded guilty before U.S. Magistrate Judge Henry B. Pitman.
“Daniel Corbin thought he had a golden source for inside tips and traded on the information he received with impunity,” stated U.S. Attorney Bharara. “He played a high risk and high stakes game, and it caught up with him in the end.”
According to the information; a superseding indictment; previously filed complaints; and statements made during today’s guilty plea proceeding:
From February 2005 through September 2008, Corbin obtained material, nonpublic information from Jamil Bouchareb. Bouchareb obtained the inside information about several mergers and acquisitions of public companies, and traded on it to the benefit of both himself and Corbin. The inside information was provided by Matthew Devlin, who got it from his wife, an employee at an international communications firm. The inside information related to mergers and acquisitions deals that his wife’s company was working on. Instead of keeping it confidential, Devlin passed the information to Bouchareb, who in turn delivered it to Corbin. After discussing it with each other, Bouchareb executed the trades. Specifically, in September 2006, Bouchareb, after consulting with Corbin, caused 2,500 shares of stock in Veritas DCG Inc. to be purchased in advance of Veritas’s acquisition by another company for the benefit of Bouchareb and Corbin’s joint account. In exchange for some of the inside information, Corbin and Bouchareb paid Devlin thousands of dollars in cash and provided him with other valuable gifts.
Corbin, 35, pleaded guilty to one count of securities fraud based on his trading in Veritas, and one count of conspiracy. The conspiracy count carries a maximum sentence of five years in prison, and the securities fraud count carries a maximum sentence of 20 years in prison. Corbin faces a total maximum sentence of 25 years in prison on both counts. He also faces a maximum fine of $250,000, or twice the gross gain or loss from the offense on the conspiracy count and a maximum fine of $5 million on the securities fraud count. Corbin agreed, as part of his plea agreement, to forfeit $1 million in proceeds from the insider trading.
He is scheduled to be sentenced by U.S. District Judge Victor Marrero on Aug. 19, 2011, at 1:30 p.m.
Devlin and Bouchareb previously pleaded guilty to conspiracy and securities fraud charges.
U.S. Attorney Bharara praised the work of the FBI and thanked the U.S. Securities & Exchange Commission for its assistance in the investigation of this case.
Assistant U.S. Attorneys Eugene Ingoglia and Marissa Molé are in charge of the prosecution.
This case was brought in coordination with President Barack Obama's Financial Fraud Enforcement Task Force, on which U.S. Attorney Bharara serves as a co-chair of the Securities and Commodities Fraud Working Group. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets and recover proceeds for victims of financial crimes. The task force is also making the public aware of resources available to protect against these types of fraud and how to report fraud when it occurs. To learn more about investment scams, how to take steps to protect yourself from scams or how to report investment fraud if you believe you have been victimized, the task force recommends that you visit its website, www.StopFraud.gov.