RBC Junior Analyst Bill Tsai Faces Insider Trading Charges

August 12, 2019 | News, Private Equity

The recent NYU grad concealed a trading account from RBC Capital markets. He faces one count of securities fraud that carries a maximum 20-year prison term.

Bill Tsai was new to Wall Street.

He was the student body president at New York University’s Stern School of Business.

He also had a sweet gig at RBC Capital Markets as a junior analyst.

Now, he’s facing 20 years in prison for a single charge of securities fraud.

According to an SEC statement, the U.S. Attorney for New York’s Southern District alleges that Tsai used a personal trading account to make $98.750 in ill-gotten profits on insider knowledge after he “learned of [an] impending acquisition through his work.”

“His profits were not the result of trading acumen, diligent research, or blind luck,” U.S. Attorney Geoffrey Berman said in a statement.

RBC Capital Markets has suspended Tsai indefinitely. The company then issued a statement noting that it was cooperating with investigators.

“RBC has a zero-tolerance approach to any breach of the law or our code of conduct,” RBC Capital Markets spokeswoman, Sanam Heidary, told Bloomberg in a statement. “We have cooperated fully with law enforcement as it relates to this matter.”

The Charges Against Bill Tsai

According to the SEC, Tsai allegedly traded call options on a company called Electronics for Imaging (EFII).

The complaint suggests that Tsai had learned of confidential information that Siris Capital Group was planning to acquire the firm. After learning of the pending $1.7 billion deal, the SEC says that he paid $28,410 for the call options. The first transactions reportedly occurred on March 29.

The complaint also alleges that the junior analyst concealed his trading account from his employer.

The SEC says that after the companies announced the deal, shares rose 29.3%. Prosecutors later calculated that he nearly earned six figures on the deal and sold the call options less than two hours after the deal hit Wall Street.

The SEC noted that it wasn’t difficult to catch Tsai.

“As alleged in our complaint, Tsai reaped nearly $100,000 in illicit profits by misusing highly confidential information entrusted to him,” said Joseph G. Sansone, Chief of the SEC Enforcement Division’s Market Abuse Unit. “Using our enhanced analysis and detection capabilities, the SEC was able to act swiftly, exposing Tsai’s misconduct just months after his illegal trading took place.”

As we reported last week, the SEC has seen some turnover in its ranks.

Free Industry News

Subscribe to our free newsletter for updates and news about alternatives investments.

  • This field is for validation purposes and should be left unchanged.


Latest Alternative Investment News

Venture Capital: Making VC More Inclusive – Google To Invest $40M In Black-Led Startups

Jeremiah Gordon is General Counsel at CapitalG, Alphabet’s (NASDAQ: GOOGL) independent growth fund which has $3 billion under management. He also leads an Alphabet-wide team focused on investing in Black-led…

Digital Assets: Colonial Pipeline Caved; Paid $5M Ransom To Hackers
May 14, 2021     Digital Assets, News

Though initial reports said that Colonial Pipeline would not pay a ransom to the hackers that brought the nation’s largest fuel pipeline to a halt, Bloomberg reported Thursday that the…

Artificial Intelligence: A Molecule For Alzheimer’s Created By Exscientia’s AI Enters Clinical Trials

Oxford, UK-based Exscientia uses AI to design and create drug candidate molecules satisfying complex therapeutic requirements with revolutionary efficiency. Joint research by Exscientia with Sumitomo Dainippon Pharma Co., Ltd. (TYO:…

Venture Capital: Vinted, The Marketplace For Previously Owned Clothing, Raises $303M
May 13, 2021     News, Venture Capital

Vinted, a European startup that runs a marketplace for used clothing and home goods, announced its raise of $303 million at a valuation of $4.5 billion, post-money. That valuation is…