Legal News

Former Dewey Associate Charged with Insider Trading

By Nathan Koppel

The ongoing crackdown on insider-trading is again lapping up on the shores of the AmLaw 100.

The SEC yesterday filed civil charges against Todd Leslie Treadway, who worked as an associate at Dewey LeBoeuf until 2008.

Click here for a report on the charges from the National Law Journal and here for a copy of the SEC’s complaint.

The SEC alleges that in 2007 and 2008  Treadway made $27,000 in profits trading on information he obtained at Dewey.

David Schertler, counsel to Treadway, did not immediately respond to a request for comment. He did not comment to NLJ, either.

Dewey LeBoeuf, NLJ reports, fired Treadway after the alleged insider trading surfaced. “Dewey & LeBoeuf has policies concerning confidentiality and prohibiting insider trading, and the firm has cooperated fully with the SEC since the outset of its investigation,” the firm told NLJ.

A 41-year-old graduate of Baylor law school, Treadway allegedly bought shares in a Dewey client  after reviewing a draft merger agreement for a proposed acquisition of the client. The former associate allegedly bought the shares, NLJ reports, three days before the deal was announced publicly.

Two former Ropes & Gray lawyers have been ensnared in the Galleon probe (click here for LB background on that matter) and a former Nixon Peabody associate pleaded guilty to improper trading last year.

Full post as published by Law Blog - WSJ.com on March 08, 2011 (boomark / email).