| A Brookline man was convicted this week of one count of conspiracy and 10 counts of securities fraud, with each count representing the purchase of Cooper Tire securities by two co-conspirators.
In the spring of 2013, the perpetrator Amit Kanodia tipped off the two co-conspirators, Ahmed and Watson, about the contemplated acquisition of Cooper Tire & Rubber Co. by India-based Apollo Tyre.
In the months leading up to the public announcement of the acquisition, both Ahmed and Watson purchased shares and options in Cooper Tire, the value of which increased 41 percent the day of the acquisition announcement. The two sold their interests in the company for a combined profit of more than $1 million. Both Ahmed and Watson paid Kanodia a portion of their illegal profits.
The conspiracy statute provides for Kanodia a sentence of no greater than five years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain/loss, whichever is greater. The securities fraud statute provides for a sentence of no greater than 20 years in prison, five years of supervised release and a fine of $5 million.
Kanodia was acquitted of eight additional counts of securities fraud related to other purchases made by Ahmed and Watson.
Ahmed remains a fugitive from justice. Watson has pleaded guilty and is set to be sentenced in November.
