Hafiz Muhammed Zubair Naseem, 37, a resident of Rye Brook and former investment banker, has been convicted for engaging in insider trading that warranted a 26-count complaint filed in Manhattan federal court.
Naseem allegedly netted over $7.5 million illegally. He faces up to 20 years in prison.
Naseem was convicted this week after a three-week trial for participating in a scheme to execute securities transactions based on confidential information regarding approaching announcements relating to acquisitions of nine companies: Northwestern Corporation; Energy Partners Ltd.; Veritas DGC Inc.; Jacuzzi Brands Inc.; Trammell Crow Co.; Hydril Company; Caremark RX Inc.; John H. Harland Co.; and TXU Corp.
Michael Barner, Naseem”™s lawyer, in press reports said he plans to appeal.
Naseem worked at a desk at Credit Suisse”™s offices in New York, and was situated in close proximity to other members of the Credit Suisse”™s Global Energy Group, according to court documents. Naseem would call his conspirator, Ajaz Rahim, and provide him with confidential information in advance of public announcements of acquisitions. After these calls Rahim would quickly purchase stock in the company being acquired. Once the deal was announced that the company would be bought, Rahim would quickly sell all of the stocks he had purchased. The pair executed dozens of securities transactions.
Rahim is still at large and wanted on an arrest warrant.
Naseem was ordered immediately to prison and is scheduled for sentencing on April 7.
