A former partner at the accounting firm Ernst & Young was found guilty on Friday of securities fraud for an insider trading scheme but not guilty of conspiracy charges.
A jury in United States District Court in Manhattan found that the ex-partner, James E. Gansman, who worked at the firm until October 2007, was guilty on six counts of securities fraud and not guilty on four counts of conspiracy, according to a court document.Online GST Certification Course by TaxGuru & MSME- Click here to Join
Mr. Gansman, who has been released on bail, faces up to 20 years in prison and millions of dollars in fines. Judge Miriam Goldman Cedarbaum scheduled his sentencing for Oct. 1.
Mr. Gansman was indicted on charges of tipping off a friend about pending deals in 2006 and 2007 involving several publicly traded companies that were the firm’s clients.
The friend, and former co-defendant, Donna Murdoch of Malvern, Pa., pleaded guilty in December to securities fraud.
Ms. Murdoch is free on bond until her sentencing, scheduled for June 4.
A spokesman for the accounting firm declined comment on the verdict.