On Friday, a jury in federal court found former Ernst & Young lawyer and partner James Gansman guilty of insider trading. Prosecutors alleged that Gansman, who ran an E&Y department that advised companies on human resources issues during mergers and acquisitions, passed information about seven forthcoming takeovers to a friend who used the details to trade securities for a profit of nearly $400,000.
The Times Online reports that the jury found Gansman guilty of six counts of securities fraud, each of which carries a maximum prison sentence of 20 years and a fine of up to $5 million. He is presently free on bail and scheduled to be sentenced on October 1.
Gansman was also sued by the SEC in May 2008.