I don’t know if this story is more amazing for the extent of the criminal activity involved, or for the realization that this kind of thing probably happens all the time, but less blatantly.
SEC Busts the Golden Goose Ring, Playboy’s Miss August 1994 
Courtesy of StockJockey, at 1440 Wall Street
Insider trading cases normally get the big headlines, and this one is sure to as well, despite the ongoing Madoff shitshow. Of course, while Madoff walks free, a Playboy Centerfold is in handcuffs. Sure, it is not the first time that has happened. But business, first.
Nina Devlin, an employee of PR firm Brunswick Group, was in possession of confidential information. Somehow her husband Matt, who worked at Lehman Brothers (Barclays), got his hands on it, and passed it along:
"The SEC stated today that “because the inside information was valuable, some of the traders referred to Devlin and his wife as the ‘golden goose.’” Devlin was allegedly rewarded with cash and luxury items for providing inside information, including a widescreen TV, a leather jacket, and Porsche driving lessons. The illegal trading allegedly produced more than $4.8 million in profits.
Related criminal charges by the U.S. Attorney’s Office for the Southern District of New York were unsealed today against some of the defendants named in the SEC’s complaint." Securities Docket
The SEC release makes for good copy:
"Matthew Devlin, a former registered representative at Lehman Brothers, Inc. in New York City, traded on and tipped his clients and friends with confidential, nonpublic information about 13 impending corporate transactions. Some of Devlin’s clients and friends, three of whom worked in the securities or legal professions, tipped others who also traded in the securities of the companies involved in the transactions.
Bouchareb Trading Group
Devlin tipped Jamil Bouchareb, his friend and client at Lehman, about 12 of the deals. Bouchareb, a Miami Beach, Fla.-based trader, traded in his own accounts and tipped his friends and business partners. He also caused his parents to trade.
Bouchareb’s tippees include his friend and business partner, Daniel Corbin, who traded in a number of the deals through accounts in the name of his companies, Augustus Management LLC and Corbin Investment Holdings LLC. Corbin, a Miami-based trader, shared some of the profits he made with Bouchareb.
Bouchareb and Corbin also shared an interest in a number of accounts that traded in the deals. In turn, Corbin provided the information to his father Lee Corbin, an attorney based in White Plains, N.Y. Lee Corbin traded in his personal accounts in four of the deals and owned an interest in the Corbin Investment Holdings account that Daniel used to trade in the deals. Bouchareb and Corbin introduced Devlin to Lee Corbin, who steered Devlin business from some of his trusts and estates clients.
Bouchareb also provided the information to his girlfriend, Maria Checa, who currently resides in Greensboro, N.C. Checa traded in her accounts, Checa International, Inc. and Playmate Capital LLC. Bouchareb shared in some of the profits that Checa made. In total, Bouchareb, Daniel Corbin, Lee Corbin, Maria Checa and Bouchareb’s parents reaped illegal profits of more than $4.2 million.
Devlin’s Other Tippees
Frederick Bowers, a registered representative at Lehman and one of Devlin’s work partners, was tipped on at least three of the transactions. Bowers then tipped Thomas Faulhaber, one of Bowers’ clients at Lehman. Faulhaber realized profits of approximately $217,000. Faulhaber kicked back cash to Bowers who shared some of it with Devlin. Devlin received at least $10,000.
Eric Holzer, Devlin’s friend and a tax associate in the New York City office of an international law firm, traded in at least three of the transactions. Holzer reaped profits of $175,000 in his own accounts and two accounts controlled by his father. Holzer gave Devlin cash, some of which came from shares he had his father buy on Devlin’s behalf.
Jeffrey Glover, another of Devlin’s Lehman clients and an investment adviser, traded in at least five of the deals. Glover, who is a resident of Bellaire, Texas, made approximately $189,000 in illicit profits.
Bouchareb and Corbin also shared an interest in a number of accounts that traded in the deals. In turn, Corbin provided the information to his father Lee Corbin, an attorney based in White Plains, N.Y. Lee Corbin traded in his personal accounts in four of the deals and owned an interest in the Corbin Investment Holdings account that Daniel used to trade in the deals. Bouchareb and Corbin introduced Devlin to Lee Corbin, who steered Devlin business from some of his trusts and estates clients.
Bouchareb also provided the information to his girlfriend, Maria Checa, who currently resides in Greensboro, N.C. Checa traded in her accounts, Checa International, Inc. and Playmate Capital LLC. Bouchareb shared in some of the profits that Checa made. In total, Bouchareb, Daniel Corbin, Lee Corbin, Maria Checa and Bouchareb’s parents reaped illegal profits of more than $4.2 million.
Devlin’s Other Tippees
Frederick Bowers, a registered representative at Lehman and one of Devlin’s work partners, was tipped on at least three of the transactions. Bowers then tipped Thomas Faulhaber, one of Bowers’ clients at Lehman. Faulhaber realized profits of approximately $217,000. Faulhaber kicked back cash to Bowers who shared some of it with Devlin. Devlin received at least $10,000.
Eric Holzer, Devlin’s friend and a tax associate in the New York City office of an international law firm, traded in at least three of the transactions. Holzer reaped profits of $175,000 in his own accounts and two accounts controlled by his father. Holzer gave Devlin cash, some of which came from shares he had his father buy on Devlin’s behalf.
Jeffrey Glover, another of Devlin’s Lehman clients and an investment adviser, traded in at least five of the deals. Glover, who is a resident of Bellaire, Texas, made approximately $189,000 in illicit profits."
Of course, this has something most insider trading scandals lack – a former Playboy Centerfold. Re-read the release…
…Checa traded in her accounts, Checa International, Inc. and Playmate Capital LLC. Bouchareb shared in some of the profits that Checa made…
Maria Checa Bio
This is one of the few pictures safe for work, but you know where to find more, now don’t you?
And if you care more about stocks than boobies, here you go:
"The trading at issue involved the following public companies: InVision Technologies, Inc.; Eon Labs, Inc.; Mylan, Inc.; Abgenix, Inc.; Aztar Corporation; Veritas, DGC, Inc.; Mercantile Bankshares Corporation; Alcan, Inc.; Ventana Medical Systems, Inc.; Pharmion Corporation; Take-Two Interactive Software, Inc.; Anheuser-Busch, Inc.; and Rohm and Haas Company. Each company was confidentially engaged in a significant transaction that involved a merger, tender offer, or stock repurchase."
Brunswick Group quickly tried to disassociate themselves from the scam, in a press release:
"As a firm, we have always been totally committed to protecting the confidentiality of our clients and as a result we have always implemented best-in-class systems and policies to ensure this happens. In this instance, this is a violation of trust between husband and wife. Our employee was the victim of a criminal act by her spouse which made detection extremely difficult despite our high standards of confidentiality." 
OK, back to the regularly scheduled Madoff-palooza.
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SEC charges “Golden Goose” and six others in huge insider trading case
Securities Docket
SEC Charges Wall Street Professionals and Others With Widespread Insider Trading
sec.gov
Paul Hastings Associate Charged With Insider Trading
New York Law Journal
Brunswick Group denies any involvement, and Devlin’s wife is apparently in the free and clear:
"The husband of a Brunswick employee has been arrested by US authorities for using information obtained illegally from her, and without her knowledge, which he has then passed to third parties. It is our understanding that the information, which relates to a limited number of her clients, was obtained by being in close proximity to his wife and from the implications of her travel schedule. There is no indication that he accessed Brunswick’s confidential systems. He has pleaded guilty to the charges and the Brunswick employee has not been charged or implicated in any way. We believe she was unaware of her husband’s activities and is devastated by these events."
