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Friday, March 29, 2024 | Back issues
Courthouse News Service Courthouse News Service

Former ISE Board VP Admits Inside Trading

MANHATTAN (CN) - The former vice chairman of the board of International Securities Exchange pleaded guilty Thursday to inside trading charges. John Marshall used inside information about ISE's $2.8 billion merger with Eurex Frankfurt to make $1 million in stock trades that he shared with a conspirator.

Marshall, 55, of Stony Brook, was a principal with Marshall Tucker & Associates, a derivatives consulting firm in Port Jefferson, N.Y. He also was a professor of business and finance at "several business schools" in the New York metro area, federal prosecutors said.

Marshall got his inside information from his previous position as vice chairman of the board of ISE, where he also was chairman of the audit and finance committee and a member of the executive committee.

Marshall tipped another principal at Marshall Tucker & Associates to the upcoming merger. The co-conspirator, identified in the federal information only as CC-1, made the trades from which the two reaped $1 million, the SEC says.

Shares of ISE rose by $20.97, or 46%, the day the merger was announced.

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