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."