SAN FRANCISCO – The former vice president of Silicon Valley Bank has agreed to plead guilty to two counts of securities fraud, according to the U.S. Attorney’s Office.
Mounir Gad, 34, of San Jose, was charged Wednesday, the federal agency said in a news release.
Prosecutors said Gad was an investment banking professional who received training and guidance about the correct use of non-public and confidential information, as well as received and knew about the prohibitions against the improper use of such information.
Gad, however, violated insider training laws in April 2015 and August 2016, when he allegedly shared non-public information with a friend – Nathan Guido, 38, of San Jose – who allegedly used it to execute securities transactions, prosecutors said.
Guido was also charged with two counts of securities fraud.
Gad pleaded not guilty to the charges, but he told a magistrate judge he has signed an agreement that would change his plea to guilty, prosecutors said. He also said he was seeking to have the court accept his guilty plea. A change of plea hearing was scheduled for Aug. 4.
Prosecutors said Guido also pleaded not guilty and acknowledged he has entered into an agreement whereby his prosecution will be deferred if he complies with the terms.
If convicted, Gad and Guido face up to 20 years in prison and a $5 million fine for each count.
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Author: Jason Green