Ex-Nomura Manager Gets 3 Months in Jail for Insider TradingBy
A former risk manager at Nomura Holdings Inc.’s Americas division was sentenced to three months in prison for trading on inside information about a private-equity fund’s planned takeover of a technology company.
Avaneesh Krishnamoorthy, an Indian citizen who started at Nomura in 2011, was sentenced Nov. 21 by U.S. District Judge Jesse Furman in New York, court records show. He was ordered to report to prison on Dec. 22 and comply with immigration authorities after his release. When Krishnamoorthy pleaded guilty in August to securities fraud, Furman said he risked being deported to India after he completed his term.
His wife, who was named in a related civil suit by the U.S. Securities and Exchange Commission, is returning to India with their son next month to avoid immigration removal proceedings, court records show. Her account at an outside brokerage firm was used to make many of the trades. She wasn’t accused of being involved in the fraud or charged in the criminal case.
"Having to leave the country they love and call home is a significant punishment for Mr. Krishnamoorthy and his entire family," his attorney, Matthew Schwartz, said in court papers before the sentencing.
Krishnamoorthy was accused last year of reaping about $48,000 from trades in NeuStar Inc. after learning Golden Gate Capital LP planned to buy it. Prosecutors said Krishnamoorthy snapped up hundreds of NeuStar shares through an undisclosed brokerage account the day after Nomura circulated a confidential email about the deal, which it helped finance.
"Mr. Krishnamoorthy takes some comfort in the judge’s recognition that this crime was an aberration, and that he has otherwise lived a life marked by honesty and hard work," Schwartz said in an email.
Jennifer Will, a Nomura spokeswoman in New York, declined to comment.