U.S. judge orders arrest of ex-fund employee who skipped trial

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By Nate Raymond

<span class="articleLocation”>A U.S. judge ordered the arrest of a former
analyst at Dell Inc founder Michael Dell’s investment fund on
Monday after he refused to show up for trial to face charges
that he made $1.5 million engaging in insider trading.

U.S. District Judge Paul Engelmayer in Manhattan issued a
bench warrant for John Afriyie, a former MSD Capital employee,
after a defense lawyer, Ezra Spilke, said that his client was in
New Jersey and would not agree to come to court.

“He is going to need to bring his toothbrush,” Engelmayer
said in court. “Under the circumstances, while I will be happy
to hear argument for bail when he is picked up, his
non-appearance and non-willingness to appear is a bad fact.”

The judge said the he still planned to have the trial go
forward later in the day.

Afriyie had been free on a $200,000 bond since his initial
arrest in April 2016 in what was one of the latest insider
trading cases to be announced by Manhattan U.S. Attorney Preet
Bharara’s office.

Prosecutors said that in early 2016, Afriyie learned about
plans by Apollo Global Management LLC to acquire
security company ADT Corp after the private equity firm
approached MSD to discuss providing debt financing for the deal.

After he and other MSD employees were emailed about a
restriction imposed on trading in ADT stock, Afriyie accessed a
shared folder on MSD’s network server and obtained information
about Apollo’s pending deal, prosecutors said.

He then bought ADT call options for $24,254 through a
brokerage account in his mother’s name, enabling him to earn
$1.53 million when the transaction was announced, prosecutors
said.

Afriyie has pleaded not guilty to charges of securities
fraud and wire fraud.

The case is U.S. v. Afriyie, U.S. District Court, Southern
District of New York, No. 16-cr-337.



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