A former Bank of America Merrill Lynch broker who
pleaded guilty in 2013 to helping a client launder profits from insider trading, must pay the firm $1.4 million in restitution, according to a sentence handed down on Tuesday in federal court in the Southern District of California.
In 2013, Gary Yin, who had been with Merrill Lynch in San Diego since 1994 and managed around $200 million, admitted to helping a client, Jing Wang, who was a president of global business operations at Qualcomm Inc., hide hundreds of thousands of dollars in insider trading profits in Qualcomm and another company it was acquiring. Mr. Yin set up brokerage accounts in the British Virgin Islands under a shell company to help conceal the scheme. Mr. Yin also took documents to Mr. Wang's brother in China as part of a cover story allegedly concocted by Mr. Wang to throw off FBI investigators.
In total, Mr. Yin, who ultimately cooperated with investigators, admitted to helping Mr. Wang transfer $525,000 to the shell account in the British Virgin Islands, according to the FBI.
Mr. Yin was also ordered to forfeit around $27,000 in profits from trades he made in Qualcomm stock in a Merrill Lynch brokerage account set up in the British Virgin Islands in his mother-in-law's name. He also had to pay a $5,000 fine.
2013 CASE PENDING
The charges in this case were brought by the U.S. Attorney's Office for the Southern District of California. The Securities and Exchange Commission
also filed charges in a 2013 case, which is pending.
An attorney for Mr. Yin, Frank Vecchione, did not respond to a request for comment.
Mr. Wang, who made $244,000 in insider trading profits, according to the SEC, pleaded guilty in June to insider trading charges and was sentenced to 18 months in prison.
Merrill lynch sought restitution for legal services and costs related to Mr. Yin's case and the firm's internal investigation.
“There is no evidence that Merrill Lynch was a participant in the offense conduct or a co-conspirator. There was no charge and no finding that the defendant conspired with Merrill Lynch to commit the offense conduct,” Judge William W. Hayes wrote in a sentencing document. “There is no evidence that Merrill Lynch assisted defendant Yin, or facilitated the offense conduct in any culpable manner. The court concludes that Merrill Lynch may qualify as a victim.”
Merril Lynch spokesman William Halldin said that the firm fully cooperated with the U.S. Attorney's office and noted that Mr. Yin was fired in 2013.
News of the sentence was
first reported by The San Diego Union-Tribune.
