'Home boy' Arjun Sekhri (ex Salomon Smith Barney guy) in deep doo-doo.
Former Salomon worker arrested in Australia
NEW YORK, June 30 (Reuters) - A former Salomon Smith Barney investment banking associate, who fled the U.S. over a year ago to evade insider trading charges, has been arrested in Australia, federal prosecutors said Wednesday.
Arjun Sekhri, 33, formerly of Jersey City, N.J., is currently in Sydney, Australia awaiting extradition. Prosecutors said that Sekhri was arrested on May 30.
He was charged in March 1998 with two counts of securities fraud and conspiracy to commit securities fraud. The complaint against him was expanded to nine counts on Monday to include charges of money laundering and wire fraud.
The charges against him allege that he obtained confidential information while working as an associate in Salomon's mergers and acquisitions department and then passed the information on to others. The scheme, which produced about $1.8 million in illegal profits, allegedly occurred between December 1996 and February 1998.
Three defendants previously pleaded guilty to securities fraud charges arising from the scheme. One of them was sentenced to two years in jail and ordered to pay $469,595 in restitution.
If convicted, Sekhri faces a possible maximum sentence of 40 years in prison on the money laundering counts alone.
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