A former Lazard banker is facing federal charges after allegedly using non-public information to generate $41 million in illicit profits, according to U.S. authorities. The case underscores ongoing scrutiny of insider trading within elite financial institutions.
- Former Lazard executive charged with insider trading
- $41 million in illicit profits generated from non-public information
- Over 140 trades executed between 2018 and 2023
- Involvement of at least two co-conspirators and offshore accounts
- Leaked deal information related to a $12 billion tech merger and energy sector divestiture
- SEC conducting compliance review of Lazard’s internal controls
A former senior executive at Lazard has been charged with orchestrating a multi-year insider trading scheme that yielded $41 million in illegal gains, U.S. prosecutors announced. The individual, whose identity remains under court seal pending formal filing, allegedly obtained confidential details about upcoming mergers and acquisitions while employed at the global investment bank, then used that information to trade equities ahead of public announcements. The insider tips reportedly came from conversations with colleagues involved in high-profile deals, including a $12 billion merger in the technology sector and a strategic divestiture in the energy industry. By acting on this non-public information, the former banker executed trades across multiple asset classes, including equities and options, primarily through offshore brokerage accounts to obscure the source of funds. Federal investigators traced the transactions using digital footprints, transaction timing, and anomaly detection across trading platforms. The $41 million figure represents the total net gain generated from over 140 separate trades between 2018 and 2023. Authorities also identified a network of co-conspirators, including two former investment associates, who received shares of the illicit profits. The case has drawn attention from regulators and market participants alike, highlighting vulnerabilities in internal controls at top-tier financial firms. The Securities and Exchange Commission has since initiated a separate review of Lazard’s compliance protocols. Affected companies whose deals were leaked include a publicly traded tech firm with a ticker symbol listed on the Nasdaq and a major oil and gas producer headquartered in Houston.