Husband of UBS banker sued by SEC for insider trading

Husband of UBS banker sued by SEC for insider trading
Peter Cho traded derivatives after eavesdropping on conversations about an upcoming deal.
DEC 18, 2018

His fiancée didn't know he was eavesdropping. He swiftly made more than $250,000. They got married. Then the Securities and Exchange Commission showed up. Now the husband of a banker at UBS Group has settled allegations that he traded on inside information after listening in on his future wife's conversations about an upcoming deal. Peter Cho, 39, obtained nonpublic information from the banker as she conducted business calls about the takeover of Virgin America by Alaska Air Group, according to an SEC complaint filed Tuesday. She had been advising Alaska Air for months before the carrier announced in April 2016 that it was buying Virgin. The complaint paints a picture of a stressed-out mergers and acquisitions banker toiling around the clock, with work interrupting leisure time spent with her fiancé, including a tour of out-of-state wedding venues. The name of the banker, who wasn't accused of wrongdoing, was not in the complaint. A person familiar with the matter identified her as Mr. Cho's wife, Annie Wang, a UBS director. She didn't immediately respond to a request for comment. "UBS takes client confidentiality extremely seriously and fully cooperated with this investigation," UBS spokesman Peter Stack said in an emailed statement. A month before the takeover was announced, Mr. Cho started buying derivatives in Virgin. He turned about $4,000 into $250,000 in less than a month by buying "aggressive" out-of-the-money call options, according to the SEC. In several instances, he was the only investor who purchased or held the series of options he traded. Mr. Cho was working at the time for an accounting firm that the SEC didn't identify. He settled the allegations without admitting or denying the agency's findings and agreed to return the $251,386 in illicit gains and pay a penalty, for a total of $532,777. His lawyer didn't respond to a request for comment. (More: Former Morgan Stanley broker to plead guilty to insider trading)

Latest News

How AI search aided scam from phony NFL player, fake financial advisor
How AI search aided scam from phony NFL player, fake financial advisor

Daejon Love and Taylor Chan's $1.3 million romance fraud scheme exposes how AI search engines can be manipulated by fabricated online identities

Schwab ordered to pay clients $1.34 million in crypto dispute involving elderly client
Schwab ordered to pay clients $1.34 million in crypto dispute involving elderly client

“It was a third party scam,” said the attorney representing the claimants.

RIA moves: Mercer adds to Atlanta presence with veteran advisor from Northern Trust
RIA moves: Mercer adds to Atlanta presence with veteran advisor from Northern Trust

Meanwhile, &Partners draws another Commonwealth practice, and Wealthcare welcomes a $550 million planning practice in the Northeast.

CogniCor adds wealthtech veterans to board in renewed RIA push
CogniCor adds wealthtech veterans to board in renewed RIA push

Palo Alto AI platform recruits RIA and fintech leaders as industry data show AI adoption reshaping advisor staffing.

Advisor moves: Merrill draws $1.2 billion UBS team in New Mexico
Advisor moves: Merrill draws $1.2 billion UBS team in New Mexico

Meanwhile, Raymond James, Wedbush, and LPL recruited veteran advisors from across Texas, North Carolina, and California.

SPONSORED Direct indexing webinar targets tax-loss harvesting amid market swings

Northern Trust’s Ken Lassner shows advisors how to convert volatility into after-tax portfolio gains

SPONSORED Who builds the income when the pension disappears?

Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income