John Marshall, former vice chairman of the International Securities Exchange, pleaded guilty on Thursday to one count of conspiracy to commit securities fraud related to an alleged scheme to leak confidential information about the $2.8 billion takeover of the ISE in 2007. Through his position at ISE, Marshall allegedly obtained nonpublic information about the pending deal and provided it to two of his business partners at a financial consulting firm, who also were charged criminally, Reuters reports. The two business partners allegedly made profits of more than $1.1 million through trades of ISE stock and stock options.
“I gave hints about merger discussions to a colleague with knowledge he would likely trade on that information,” Marshall acknowledged in court. Marshall reportedly faces a sentence of between 37 and 46 months in prison.