Home / Crime and Justice / Brielle Man Admits $1.5M Insider Trading Profits
Brielle Man Admits $1.5M Insider Trading Profits
25 Oct
Summary
- Former broker Christopher Matthaei pleaded guilty to securities fraud conspiracy.
- Matthaei illegally profited nearly $1.5 million from insider trading.
- The scheme involved confidential merger information about a shell company.
Christopher Matthaei, 48, of Brielle, has pleaded guilty to conspiring to commit securities fraud, U.S. Attorney Robert Frazer announced. Matthaei, a former partner and senior salesperson at a brokerage firm, faces a potential five-year prison sentence. His sentencing is scheduled for February 25, 2027.
The scheme involved illegal profits of nearly $1.5 million derived from trading on material nonpublic information. Matthaei conspired with his then-client, Sean Wygovsky, a portfolio manager at a Canadian firm. Wygovsky shared confidential merger details about a special purpose acquisition company with Matthaei.
Between May 29, 2020, and June 18, 2020, Matthaei repeatedly purchased securities of the shell company. After the merger was announced on June 19, 2020, his holdings increased significantly in value. He then sold his securities, generating illicit profits. Matthaei agreed that his total profits from this conduct were between $2 million and $3.5 million.
Wygovsky previously pleaded guilty to securities fraud in May 2023. Matthaei was charged in March 2023 and indicted in June 2024.
