A former hedge fund manager arrested earlier this year has been indicted on federal charges he participated in a $7 million insider trading scam.
The indictment against 45-year-old Joseph Contorinis of New York City was announced by federal prosecutors on Friday.
The indictment charges him with conspiracy and securities fraud. It says he executed illegal trades from 2004 through June 2006. At the time, he managed a hedge fund at an investment advisory firm.
He's accused of acting on information he received from a close friend who was an investment banker.
A message for comment left with his lawyer was not immediately returned.