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BRIELLE — A Brielle resident was arrested and charged Thursday with engaging in an insider trading scheme that federal authorities say netted more than $3 million in profits from insider trading.
Christopher Matthaei, 44, charged by complaint with one count of securities fraud conspiracy and one count of securities fraud, appeared before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court on Thursday and was released on $250,000 unsecured bond, according to U.S. Attorney Philip R. Sellinger.
In a statement released by his office, Mr. Sellinger said Mr. Matthaei is alleged to have “illegally exploited his relationship with a close friend to gain access to confidential information about yet-to-be-announced mergers and acquisitions involving special purpose acquisition companies, or SPACs.”
According to authorities, Mr. Matthaei was a partner and senior salesperson at a Charlotte, North Carolina-based broker-dealer with offices in Red Bank, New Jersey. He is accused of trading on insider information received from “a conspirator, a friend” at a Canadian asset management firm between May 2020 and February 2021 and sharing it with the firm as a potential investor.
In June 2020, authorities said, Mr. Matthaei “paid for a private plane and extended trip with the co-conspirator and their families to a luxury resort on the island of St. Barth, where they continued to engage in the insider trading scheme.”
Mr. Matthaei made more than $3.4 million in illegal trading profits from the insider trading scheme, according to the release.
If convicted on the securities fraud count Mr. Matthaei could face up to 20 years in prison and a $5 million fine. If convicted on the securities fraud conspiracy count, he could face up to five years in prison and a $250,000 fine — or twice the gross amount of gain or loss from the offense, whichever is greatest.
The U.S. Securities and Exchange Commission also filed a civil complaint against Mr. Matthaei on Thursday based on the same allegations.
The U.S. Attorney’s office stated “the charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.”
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