ICYMI: Brookline Man Arrested for Million Dollar Insider Trading Scheme

Editor’s Note: This was originally published on April 2.

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A Brookline man was arrested and charged Thursday in U.S. District Court in Boston in connection with his role in an insider trading scheme that netted more than $1 million in illegal profits.

Iftikar Ahmed, 44, of Brookline, was charged with one count of securities fraud. He was arrested Thursday morning, according to a recent press release.

Also arrested, and facing the same charges, is a fund manager named Amit Kanodia, 47, of Greenwich, Conn.

As alleged in the criminal complaint, prior to April 2013, Kanodia secretly tipped off his friend Ahmed about the contemplated acquisition of Cooper Tire & Rubber Company by India-based Apollo Tyre. Kanodia learned about the possible acquisition from his wife who was the General Counsel of Apollo at the time. In the months leading up to the public announcement of the acquisition, Ahmed and Kanodia’s associate purchased shares and options in Cooper Tire which trades on the New York Stock Exchange.

On the day of the announcement, Cooper Tire’s share price increased 41% and Ahmed and his associate began selling their interests in the company for a combined profit of more than $ 1 million. It is alleged that both Ahmed and his associate paid Kanodia a portion of their illegal profits.

The details contained in the complaint are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.