MANHATTAN (CN) - A Manhattan investment banker shared $1 million in inside-trading profits with his father, federal prosecutors said Thursday in a 9-count indictment.
Sean Stewart, 34, surrendered to the FBI Thursday in Middleton, Wisc.
His father, Robert Stewart, 60, was arrested Thursday morning at his home in North Merrick, Long island. Sean Stewart is expected to appear in Manhattan Federal Court on Monday.
The Stewarts are accused of trading on inside information about acquisitions of five health care companies from 2011 to 2014.
The U.S. Attorney's Office said Sean Stewart was a managing director at an investment advisory firm in Manhattan. Wire services described him as an investment banker at Perella Weinberg Partners, which is not named in the indictment.
According to the 31-page indictment, Sean Stewart traded on inside information about acquisitions about INC Research's purchase of Kendle International in May 2011; Apax Partners' acquisition of Kinetic Concepts in July 2011; Hologic's purchase of Gen-Probe in April 2012; Linde AG's acquisition of Lincare Holdings in July 2012; and Becton Dickinson's acquisition of CareFusion in October 2014.
During the first two deals, the U.S. attorney said, Sean was working for Investment Bank A, which news services identified as JP Morgan Chase.
They are charged with six counts of securities fraud, two counts of conspiracy, and fraud in connection with a tender offer. If stacked, the maximum sentences would be 90 years.
The SEC filed parallel civil charges.
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