Ex-Israel swimming star Dov Malnik, pleads guilty to insider trading in U.S.
The U.S. Attorney for the Southern District of New York said Sunday that former Israeli swimming star Dov Malnik has pleaded guilty to offenses relating to securities fraud and insider trading.
Malnik, 43, and his Israeli business partner Tomer Feingold,
42, have both been charged with numerous offenses relating to their roles as
securities traders in a wide-ranging international insider trading ring between
2013 and 2017, which allegedly made them both millions of dollars in illicit profits
by trading based on inside information.
Malnik represented Israel in the world swimming championship
in Japan in 2001 and in Spain in 2003, and even held the Israeli record in
breaststroke.
According to the indictments, the two tried to disguise
their criminal activities through the use of encrypted messages as well as
burner phones. In addition, the two allegedly used straw companies and bank
accounts in countries considered tax havens.
Malnik, a citizen of Israel and Lithuania, pleaded guilty to
one count of securities fraud, which carries a maximum sentence of 20 years in
prison. He was arrested in Switzerland on October 7, 2020, and was later
extradited to the U.S..
Feingold, who is also an Israeli citizen, was a competitive
swimmer who represented Texas College in the U.S. College Championships in the
early 2000 and reportedly currently lives in Italy.
He has not yet been extradited to the United States, where
he has been charged with several counts of fraud, trafficking in inside
information and money laundering - all of which he denies.
According to the U.S. Securities and Exchange Commission
that filed the indictment, the two men were named in January trial testimony by
Marc Demane Debih, a former Geneva investor who admitted to earning more than $
70 million for his role in the insider-trading network.
According to the SEC, Debih received the information, which
he passed on to Feingold and Melnick, from a man named Benjamin Taylor, 36, a
former banker at Moelis & Co, and Darina Windsor, 32, who previously worked
at Centerview Partners.
The investigation also convicted an American investment
banker named Brian Cohen, who admitted to trading inside information in January
2020, as well as a manager at a pharmaceutical company who was also convicted
of the same offense.
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