MSD Capital Analyst to Forfeit $2.8 Million for Insider Trading

An investment analyst who made $1.6 million on an insider trading scheme must forfeit $2.8 million, the Second Circuit said July 8.

The forfeiture includes the appreciation of the funds John Afriyie made off his scheme, as required by law, the opinion by Judge Rosemary S. Pooler said.

Afriyie worked for MSD Capital, which possessed material nonpublic information about Apollo Global Management’s acquisition of home security firm ADT Corp. After accessing the MNPI, Afriyie bought ADT call options.

After Apollo publicly announced its plan to buy ADT, ADT’s stock price rose 47.5%, and Afriyie’s investment increased by 6,000%. Afriyie made ...