Indonesian charged with insider trading

Indonesian charged with insider trading

NEW YORK (Reuter): A J.P. Morgan trainee was charged with
insider trading Friday for allegedly trading in the securities of
three companies based on confidential information he learned at
his job, federal prosecutors said.

Papers filed in U.S. District Court in New York named the
defendant as Roy Handojo, 25, a citizen of Indonesia who has
lived in New York City since October 1996.

A civil complaint filed by the Securities and Exchange
Commission in addition to the criminal complaint said Handojo
profited by at least US$363,189 on the trades.

If convicted of the criminal charges, he could face up to 10
years in prison and a $1 million fine. Handojo was arraigned and
released on a $1 million personal recognizance bond, officials
said.

Handojo was employed in the Financial Institutions, Government
and Real Estate Group at J.P. Morgan when he learned about client
corporations that were the subject of acquisitions,including
Barnett Banks Inc., Signet Banking Corp. and ACC Consumer Finance
Corp.

The complaint alleged that Handojo used the information to
trade in securities in his own account before it was made public.

It alleged he later sold the securities for a profit.

J.P. Morgan said in a statement that Handojo had been
suspended and it was cooperating with authorities.

"We take pride in Morgan's reputation as a highly ethical firm
and do not tolerate any abuse of the trust placed in us by
clients," the firm said. "Any misappropriation of information is
a serious violation of our rules, and the standard of integrity
that is a hallmark of the firm."