Todd Leslie Treadway, a former associate of Dewey & LeBoeuf has been charged with insider trading. Treadway, who worked in Dewey’s Executive Compensation, Employee Benefits & Employment group, allegedly walked away with $27k after investing in two of Dewey's clients in 2007 and 2008. According to The National Law Journal:
The SEC said Treadway in June 2007 bought shares in Dewey client Accredited Home Lenders after reviewing a draft merger agreement for its acquisition by Lone Star Funds. Treadway bought the shares via his office computer three days before the deal was announced publicly, the complaint said.
Later, in May 2008, Treadway bought shares in Dewey client CNET before the announcement that CBS Corp. planned to buy it for $1.8 billion, the SEC said. After reviewing various documents in the deal, the agency alleged, Treadway bought CNET stock using four different online brokerage accounts eight days before the deal was announced.
After learning about the alleged insider trading in 2008, Dewey dismissed Treadway. According to the firm, “Dewey & LeBoeuf has policies concerning confidentiality and prohibiting insider trading, and the firm has cooperated fully with the SEC since the outset of its investigation.”
BigLaw hasn’t been immune from insider trading investigations. Other recent investigations include ones focusing on former Ropes & Gray associates Arthur Cutillo and Brien Santarlas and former Nixon Peabody associate Melissa Mahler.
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