The first case against a [tag]NSYE specialist firm[/tag] trader was aqutted of charges that he made improper trades of Eli Lilly stock. The case against Robert Scavone Jr. ended with a finding of [tag]not guilty[/tag] for one count of secruities fraud. He faced up to 20 years in prison.
The accusations against Scavone, a former trader for Van der Moolen Specialists USA LLC, included illegally trading for the firm’s account ahead of public orders. It was alleged that the firm made profits (and avoided losses) to the tune of $500,000 because of this. The defense was that the trades weren’t intentional crimes, rather that they were mistakes as well as misinterpreted.
11 more traders are expected to go to trial with their cases. 2 other traders have been found guilty in trials, and 2 more pleaded guilty.