CJR: ‘An Insider-Trading Indictment Shows Ties to Bloomberg News Scoops’

Bill Grueskin, reporting for Columbia Journalism Review:

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.

★ Friday, 2 April 2021