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$1M Federal Insider Trading Scheme: Westchester Man Shared Private Info, Feds Say

A Westchester man and Long Island resident are among four people charged in connection with their alleged involvement in an insider trading scheme that netted over $1 million in profits, federal officials announced.

Stock trading. 

Stock trading. 

Photo Credit: Pixabay/Pexels

David Cooper, age 38, of the Westchester village of Larchmont, and John Lowe, age 61, of the Suffolk County hamlet of Sayville, were arrested on charges of conspiracy to commit securities fraud and securities fraud, the US Attorney's Office for the Eastern District of New York announced on Wednesday, Jan. 15. 

Three other men—Randy Grewal, 54, of Anthem, Arizona, and Richard Ringel, 54, of Boca Raton, Florida—were also arrested and face similar charges, officials said.

Cooper and Lowe, both central figures in the scheme, are accused of exploiting confidential information from investment banks to execute fraudulent trades ahead of public stock offerings. Cooper, a broker, allegedly provided material non-public information to Lowe and others, who then traded on this insider knowledge.

"As alleged, the defendants exploited their access to inside information for years to gain an unfair advantage over the investing public for their own personal gain," said Acting US Attorney Judy Philips, who added, "The arrests and indictment demonstrate that this Office will protect the integrity of the securities markets and aggressively prosecute those who engage in insider trading.” 

According to prosecutors, the insider trading scheme spanned from January 2018 to May 2024. Cooper is accused of breaching confidentiality agreements to share material non-public information about upcoming stock offerings, including the timing, structure, and pricing of deals. The information allowed Lowe, Ringel, and Grewal to execute short sales before the public announcements, resulting in substantial profits. 

The companies involved included Chicken Soup for the Soul Entertainment, Revelation Biosciences, and Tivic Health Systems. Evidence obtained through wiretaps revealed that Cooper passed information to Lowe, who then shared it with others, further implicating the group in the fraudulent activity, according to federal officials.

Both Cooper and Lowe face up to 25 years in prison if convicted. 

"This is a case of pure greed where individuals lied, obtained information illegally, and used it solely for their own personal financial gain. Postal Inspectors, along with our law enforcement partners, will continue to investigate fraud vigilantly and will protect investors from falling victim to predatory behavior," said Brendan Donahue, Acting Inspector in Charge of the US Postal Inspection Service.  

Cooper was arrested in Westchester and arraigned in Brooklyn federal court, while Lowe is expected to be arraigned at a later date. The investigation involved multiple agencies, including Homeland Security Investigations and the US Postal Inspection Service.

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