NEWARK, NJ – Christopher Matthaei, a former partner at a New Jersey broker-dealer firm, was arrested yesterday and charged with securities fraud conspiracy and securities fraud for engaging in an insider trading scheme that netted $3.4 million in illegal profits. Matthaei exploited a close friend’s access to confidential information about mergers and acquisitions involving special purpose acquisition companies (SPACs).
The FBI led the investigation, and the U.S. Securities and Exchange Commission filed a civil complaint against Matthaei. The securities fraud count carries a maximum penalty of 20 years in prison and a $5 million fine, while the conspiracy count has a maximum potential penalty of five years in prison and a $250,000 fine.