Three convicted of insider trading in scheme involving Baton Rouge company
BATON ROUGE - Three people have been convicted of insider trading for their plan to profit off of a 2012 merger involving a Baton Rouge-based company.
According to a release from the Department of Justice, Kelly Liu was an employee at the Shaw Group in July 2012 when the company agreed to a merger with Chicago-based construction company CB&I.
The DOJ says Liu used her position to get inside information on the merger ahead of its announcement, which would greatly increase Shaw's stock prices. Liu allegedly passed this info on to two others, Salvador Russo III and Victory Ho, so that the two may buy up Shaw stocks and then sell them off for an inflated price after the merger.
Ho reportedly made about $300,000 off the scheme. Russo held on to his stocks.
All three have been convicted and now face a significant term of incarceration, fines, restitution, and supervised release following imprisonment. Their sentencing dates have not yet been set.