SAN FRANCISCO (CN) – A former director in Citigroup Global Markets’ investment banking division tipped his brother to upcoming deals in the health industry, and the brother and four of his friends made more than $6 million from inside trading, the SEC claims in Federal Court.
The SEC says Citigroup’s former banker Maher Kara, now of San Carlos, Calif., tipped his brother Michael Kara, of Walnut Creek, Calif., who passed on the tips to four friends.
“Michael Kara made more than $1.5 million from the scheme, and those he tipped made more than $4.5 million,” according to the SEC complaint.
Also charged were Emile Jilwan, of Pleasanton, Calif.; Zahi Haddad, of Stockton; Bassam Salman, or Orland Park, Ill.; and Karim Bayyouk, of Livonia, Mich.
The SEC provided an “Insider Trading Case Map” in announcing this complaint.
In separate cases alleging inside trading on tips from the Karas, the SEC charged Nasser Mardini, of Stockton; and Joseph Azar, of Pleasanton.