NY - A federal judge on Friday denied a motion by a group of ex-securities brokers and former A.B. Watley Inc. executives to dismiss a criminal case against them in an alleged scheme to misuse brokerage firm "squawk" boxes.
Prosecutors have alleged that three ex-brokers placed open telephone lines next to the internal speaker systems at their companies so that Watley day traders could secretly eavesdrop on block orders by institutional clients. (more)
1/13/09 - UPDATE - The U.S. dropped its sole charge against a former A.B. Watley Group Inc. executive who was set to be retried next month in a case where day traders were accused of eavesdropping on institutional trades using “squawk boxes.”
Michael Picone, Watley’s former chief operating officer, agreed to cooperate with prosecutors, Assistant U.S. Attorney Jonathan Green said today. In return, the U.S. dropped the count of conspiracy to commit securities fraud, a crime punishable by as long as 25 years in prison.
“In exchange for the defendant’s cooperation, the government agrees to dismiss the charge against him,” Green told U.S. District Judge Jack B. Weinstein. (more)
