Insider trading found beneath the Take-Two takeover bid

Haven’t had this in a while, some good old game related crime. This isn’t some punk kid stealing a PS3 though, this little crime netted some people a lot of money. Federal prosecutors have broken up an insider trading ring that scooped up a total of 4.8 million in illegal trades, all based on non-public information. Apparently, $250,000 of that money came from insider trading surrounding the EA bid to acquire Take-Two. The participants received insider tips about the takeover, and traded accordingly.

The leak allegedly came from Nina Devlin, an employee of the public relations firm, The Brunswick group, who handled information about the EA bid. However, the SEC has cleared Nina Devlin of any wrong doing after learning that it was actually her husband, a Barclay’s Wealth broker, that used the information he learned from his wife. That information was used to tip off his clients regarding investments before EA’s takeover bid became public. The husband, Matt Devlin, and nine other defendants are to be slapped with insider trading charges.

Hope they don’t run into any 2K Sports fans in prison…

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