Last Member of Insider Trading Ring With Three Chains Sentenced

Last Member of Insider Trading Ring With Three Chains Sentenced

Rodolfo Sablon was sentenced to serve six months in prison and pay forfeiture of $923,566 along with a $5,000 fine based on his role in an insider trading scheme. Previously, Mr. Sablon pleaded guilty to one count of conspiracy to commit securities fraud and fraud. He was charged in a 54 count criminal complaint along with Michael Siva, Roberto Rodriguez, Jhonathan Zoquier and Jeffrey Rogiers. The charges included conspiracy, wire fraud and multiple counts of securities fraud and fraud in connection with a tender offer. Previously, each of the other defendants named in the criminal action pleaded guilty. U.S. v. Siva, No. 1:17 – cr-00503 (S.D.N.Y.).

The action is based on an insider trading scheme that traces to 2014 and 2015. At its center was Daniel Rivas, formerly an employee in the capital markets technology group of a bank in New York City, according to allegations in the SEC’s parallel complaint. James Moodhe, Roberto Rodriguez, Rodolfo Sablon and Jhonathan Zoquier, all friends of Mr. Rivas, and Michael Siva and Jeffrey Rogier, respectively a friend of Mr. Moodhe and a friend of Mr. Zoquier, were named as defendants in the SEC complaint.

The insider trading scheme involved tips on 30 corporate deals over the two year period that resulted in over $5 million in illegal trading profits. The scheme involved three tipping chains. In the first chain tips went from Mr. Rivas to James Moodhe who had about $2 million in trading profits. He in turn tipped Michael Siva who had about $880,000 in profits. Mr. Siva in turn tipped a client who had about $300,000 in profits.

The second chain involved tips from Mr. Rivas to Roberto Rodriguez and Rodolfo Sablon. Together they made about $2 million in trading profits. Mr. Rodriguez, in addition, tipped a friend.

The third chain involved tips from Mr. Rivas to Jhonatan Zoquier who had about $30,000 in trading profits. He in turn tipped his friend Jeffrey Rogiers who had about $50,000 in trading profits and tipped two others. Mr. Sablon was the last defendant in the criminal case to be sentenced. See also SEC v. Rivas, Civil Action No. 1:17-cv-06192 (S.D.N.Y. Filed August 16, 2017).