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NEW YORK A former analyst at the investment fund
of Dell Inc founder Michael Dell was arrested on Monday after he
refused to show up for trial to face charges that he made $1.5
million engaging in insider trading.
U.S. District Judge Paul Engelmayer in Manhattan earlier in
the day issued a bench warrant for John Afriyie, a former
employee of MSD Capital, after a defense lawyer, Ezra Spilke,
said his client was in New Jersey and would not agree to come to
“He is going to need to bring his toothbrush,” Engelmayer
said in court. “Under the circumstances, while I will be happy
to hear argument for bail when he is picked up, his
non-appearance and non-willingness to appear is a bad fact.”
About five hours later, Kevin Kamrowski, a spokesman for the
U.S. Marshals Service, said Afriyie was in custody and being
brought to the courthouse. Engelmayer had said he still planned
to have the trial go forward.
Afriyie had been free on a $200,000 bond since his initial
arrest last April in what was one of the latest insider trading
cases to be announced by Manhattan U.S. Attorney Preet Bharara’s
Prosecutors said that in early 2016, Afriyie learned about
plans by Apollo Global Management LLC to acquire
security company ADT Corp after the private equity firm
approached MSD to discuss providing debt financing for the deal.
After he and other MSD employees were emailed about a
restriction imposed on trading in ADT stock, Afriyie accessed a
shared folder on MSD’s network server and obtained information
about Apollo’s pending deal, prosecutors said.
He then bought ADT call options for $24,254 through a
brokerage account in his mother’s name, enabling him to earn
$1.53 million when the transaction was announced, prosecutors
Afriyie has pleaded not guilty to charges of securities
fraud and wire fraud.
The case is U.S. v. Afriyie, U.S. District Court, Southern
District of New York, No. 16-cr-337.
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