The two girlfriends of a former Mizuho International Plc investment banker didn’t know of each other’s existence, but they both collected more than $3.2 million in profits from their boyfriend’s alleged insider trading scheme, Bloomberg’s Lindsay Fortado reports. According to Bloomberg, the banker, Thomas Ammann, advised Canon on its acquisition of the Netherlands-based Océ N.V. and then allegedly provided details of the trade to his girlfriends Christina Weckworth and Jessica Mang before the deal went through.
Weckwerth took in around $3.2 million after investing $1.3 million before the Canon deal in 2009, and Mang made around $105,000 on a $63,000 stake.
Ammann pleaded guilty in June to trading on insider information and encouraging his girlfriends to commit insider trading.
During Tuesday’s opening argument at a London criminal court, Amanda Pinto, a lawyer for the U.K. Financial Services Authority, told the jury:
“These two women managed to almost double their money by trading on just one stock. Each of the girlfriends considered Thomas Ammann to be their boyfriend and neither knew of the other.”
Mang wrote in her diary that Ammann advised her to invest and that she was annoyed by her roommate who was insisting the trades were insider dealing, Pinto said.
According to court documents, Mang wrote:
“Is that necessary? Increasingly prissy.”
One lesson: If you’re reaping huge profits from an insider trading scheme, don’t write about it in your diary.
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