NEW YORK — A banker who executed trades against confidential information that Albertsons would be sold pleaded guilty to charges of conspiracy and securities fraud, federal investigators here said.
According to the U.S. Attorney's Office, Michael Koulouroudis executed trades on tips provided to him by Nicos Stephanou, an investment banker at UBS who represented a private equity firm that was interested in acquiring Albertsons in 2005 and 2006. Koulouroudis faces up to five years in prison on conspiracy charges and up to 20 years on securities fraud, He is scheduled to be sentenced Feb. 11.
Stephanou in May pleaded guilty to seven charges of distributing tips to friends and associates including Joseph Contorinis, a former money manager for the Jefferies Paragon Fund, who was indicted by a federal grand jury on fraud charges last week.
Two other associates of Stephanou have also been charged. Ramesh Chakrapani, a managing director in Blackstone Group's mergers and acquisitions practice advising Albertsons in its sale, was arrested and charged with conspiracy and securities fraud in February related to the deal, but charges against him were later dropped.
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