Elliot J. Smith, Founding Member of CBOE, Pleads Guilty to Obstruction of Justice in SEC Probe

Elliot Joel Smith, a founding member of the Chicago Board Options Exchange, pleaded guilty on Tuesday to obstruction of justice in connection with an insider trading investigation by the SEC. Smith entered his plea before U.S. District Judge George B. Daniels in Manhattan, Dow Jones reports.

Smith, who is 76 years old, faces up to five years in prison on the obstruction of justice charge, and is scheduled to be sentenced on March 18.

According to the article,

Prosecutors alleged that Smith, who was a managing director at Broadband Capital Management LLC, provided the SEC with fake memorandums and exhibits in connection with the regulator’s probe into possible insider trading. He provided false testimony to the SEC on at least one occasion in 2004, prosecutors said.

The government also alleged that Smith of New York asked his administrative assistant, who had worked for him for 17 years, to lie about the source of one memo and its attachments in April 2006. The obstruction of justice occurred between December 2003 and April 2006, prosecutors said.

Read the Dow Jones article


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