News » Crime » 2 Indian Americans Amit Kanodia, Iftikar Ahmed charged in $1.1 million insider trading scheme

2 Indian Americans Amit Kanodia, Iftikar Ahmed charged in $1.1 million insider trading scheme

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If convicted, the duo face a maximum of 20 years in prison, apart from a fine of $5 million.

AB Wire

WASHINGTON, DC: A Brookline, Massachusetts man and a Connecticut fund manager were arrested and charged in U.S. District Court in Boston last week in connection with their role in an insider trading scheme that netted more than $1 million in illegal profits.

Amit Kanodia, 47, of Brookline, and Iftikar Ahmed, 44, of Greenwich, Connecticut, were charged with one count of securities fraud.

As alleged in the criminal complaint, prior to April 2013, Kanodia secretly tipped off his friend Ahmed, an executive at a Connecticut-based fund, and another friend, about the contemplated acquisition of Cooper Tire & Rubber Company by India-based Apollo Tyre.

Kanodia learned about the possible acquisition from his wife who was the General Counsel of Apollo at the time. In the months leading up to the public announcement of the acquisition, both Ahmed and the associate, purchased shares and options in Cooper Tire which trades on the New York Stock Exchange.

On the day of the announcement, Cooper Tire’s share price increased 41% and Ahmed and his associate began selling their interests in the company for a combined profit of more than $ 1 million. It is alleged that both Ahmed and his associate paid Kanodia a portion of their illegal profits.

“The defendants here are alleged to have improperly obtained confidential information from Apollo Tyre and used that information to unlawfully beat the markets and line their own pockets,” said United States Attorney Carmen M. Ortiz. “Trading on insider information is fraud, plain and simple.”

If convicted, the duo face a maximum of 20 years in prison, apart from a fine of $5 million.


2 thoughts on “2 Indian Americans Amit Kanodia, Iftikar Ahmed charged in $1.1 million insider trading scheme”

  1. On doing some search found that Amit Kanodia has a rape charges in 2013, While she is still married to his wife. He is really bad news. He has also funded RSS which is an Indian conservative Hindu party that persecuted and killed several US and international missionaries and Christians.

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