INTERNATIONAL – A federal judge in Manhattan on Thursday rejected requests by a Standard & Poor’s credit rating analyst and a friend to dismiss criminal insider trading charges related to the $9.3 billion (R130bn) mergers of paint makers Sherwin-Williams and Valspar.
The US District Judge Jed Rakoff said the indictment’s failure to allege that the analyst Sebastian Pinto-Thomaz and Jeremy Millul, a jeweller in Manhattan’s Diamond District, shared a “meaningfully close personal relationship” didn’t matter because it said Pinto-Thomaz had an “intention to benefit” Millul.
Pinto-Thomaz’s lawyer, Henry Mazurek, said prosecutors would not be able to prove their case at trial.
“We are disappointed that the Court denied Millul’s motion to dismiss the insider trading charges,” said Millul’s lawyer, Michelle Shapiro.
Prosecutors accused Pinto-Thomaz of tipping Millul and another friend in March 2016 about the impending merger after learning about it confidentially at work, and that the friends made about $300 000 trading on his tips.