MANHATTAN (CN) - John Marshall, former vice chairman of the International Securities Exchange and a principal at Marshall Tucker & Associates was sentenced Monday to 18 months in federal prison for inside trading. His co-conspirator and partner, Alan Tucker, also has pleaded guilty to conspiring to commit securities fraud.
Through his position on the board, Marshall learned that the International Securities Exchange, a stock and options exchange, was the target of a merger with Eurex Frankfurt, a derivative exchange operated by German and Swiss companies. Marshall tipped Tucker to the merger, and he used the inside information to trade ahead of the market. After the merger was announced, the men made more than $1 million in profits.
In addition to his prison sentence, Marshall was ordered to forfeit $1,054,009. Marshall, 55, of Stony Brook, also was a professor of finance and economics at several business schools in the New York metro area, the U.S. Attorney's Office said.
Marshall and Tucker both pleaded guilty in September.