A New York banker was sentenced to three years for giving an unfair investment tip to his father. According to Newsday, the judge did not believe that the man was being honest when he claimed he did not know his father would trade on his stock tip.
The banker focused on health care deals, and he was convicted of telling his father about five transactions just before they happened. While he admitted to discussing confidential information with his parents, the banker claimed he did not know that his father, an accountant, would use that information in trades. As the New York Times reports, the banker is appealing his conviction, challenging evidence that prosecutors used to show that he did know his father was trading on the information he had been told.
The evidence in question was used to prove the banker’s intent to tip off his father, rather than just making casual work conversation. The father had told a friend about a tip, but the friend had been caught on insider trading and began cooperating in the government’s investigation against the banker. The evidence that was admitted on an exception to the hearsay rule was the father saying he had provided a tip “on a silver platter” to the friend, and he couldn’t believe his friend did not invest.
The judge did not allow other recorded statements from the father to be admitted. These recordings included statements from the father that his son was unaware that he was trading on the information. Since some recordings were allowed into evidence and not others, the banker’s lawyer is asking for a new trial to ensure the banker’s right to offer a defense is not beiong violated.