NEW YORK, Aug. 15 (UPI) -- A federal grand jury has indicted four Wall Street brokers for securities fraud for letting day traders listen to conversations with institutional clients.
Kenneth E. Mahaffy, Jr. and Timothy J. O'Connell, formerly of Merrill Lynch; Ralph D. Casbarro, formerly of Citigroup's Salomon Smith Barney unit; and David G. Ghysels Jr., formerly of Lehman Brothers, were indicted in New York, the Wall Street Journal said Monday.
Prosecutors said the primary charges, unsealed Monday, were securities fraud and commercial bribery.
Authorities are investigating whether the internal communication systems that broadcast confidential market information at several Wall Street brokerages were compromised for quick profit.
The Securities and Exchange Commission also brought civil charges against the four brokers and a day trader, John J. Amore, who was charged with paying the brokers in return for live access to the brokerage firms' so-called squawk box transmissions.
