Sunday, December 7, 2008

Former Director Of AMEX Pleads Guilty TO Obstruction Of Justice

Elliot J. Smith, 76, a former director of the American Stock Exchange and a founding member of the Chicago Board Options Exchange, plead guilty to one count of obstructing justice in relation to an insider trading case. Smith, who was also a founding member and former chairman of the Amex Commodities Exchange, was a managing director of Broadband Capital Management LLC, a registered broker-dealer. In July, the SEC began investigating Smith in connection with a possible insider trading case involving the sale of securities in an unnamed pharmaceutical company through Broadband in 2003. According to prosecutors, Smith submitted false documents in relation to the sale of shares in that company and two others. He faces up to 5 years in prison, plus a fine of $250,000 upon sentencing which is scheduled for March 18. 2009.

Read the story here, here and here.


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