For more than six months, federal prosecutors say, a New York man
used inside information to make illegal profits in the stock
market — and a core element of his alleged scheme was his
interaction with Bloomberg News, which published several stories
shortly after the trader arranged to make significant purchases of
the companies’ shares.
Last month, a federal grand jury indicted Jason Peltz on multiple
counts of securities fraud, money laundering, tax evasion and
lying to the FBI. Peltz, 38, is accused of working with over a
half-dozen unnamed and unindicted co-conspirators to learn about
impending takeovers and other market-moving news, and to move
money between accounts as a way to hide his role and profits.
The indictment notes that Peltz’s moves were timed closely to
stories that ran at “a financial news organization.” While the
newsroom isn’t named, federal officials cite five stories and
their timestamps — all of which match precisely to pieces that
ran on Bloomberg News’ website. Each of those stories had shared
bylines, but only one reporter is identified as an author for all
of the articles: Ed Hammond, who worked at the Financial Times
before coming to Bloomberg more than six years ago to cover
mergers and acquisitions. In 2017, Hammond was named Bloomberg’s
senior deals reporter in New York — a highly prestigious
post in that newsroom.
Well this is just shocking.