Former GE Capital exec jailed for insider trading

Reuters, 04.04.03, 3:57 PM ET

NEW YORK (Reuters) - A former General Electric Capital Corp. executive has been sentenced to 15 months in prison for tipping off a kung fu instructor about General Electric's purchase of Heller Financial Inc., enabling the instructor to make a profit of more than $150,000, prosecutors said Friday.

Anthony Chrysikos, 39, of Edgewater, New Jersey, a former vice president of finance in the aircraft services division of General Electric Capital was sentenced late Thursday in Manhattan federal court. General Electric Capital is the financing arm of General Electric Co. He pleaded guilty last year to two insider trading charges relating to GE Capital's plans to make a $5.3 billion cash tender offer for Heller Financial's stock in July 2001. Heller Financial is a commercial lender based in Chicago.

Chrysikos, who had been a member of the GE Capital deal team, had tipped off his friend Michael Martello, a kung fu instructor, three days before the offer became public. Martello was living in Taiwan at the time of the alleged scheme. Martello allegedly purchased Heller Financial call options before the deal was publicly announced and later sold them at a profit of $157,259. Chrysikos and Martello had shared the profits from the unlawful trades.

Martello was also charged in the case and pleaded guilty last year.

http://www.forbes.com/business/newswire/2003/04/04/rtr930932.html

******************************************

Sentencing in Insider Trading Case. A former General Electric Capital Corp. vice president who disclosed a prospective acquisition by his company was sentenced to 15 months in federal prison for insider trading, prosecutors said.

Anthony Chrysikos, 39, was a vice president in GE Capital's aircraft services division and a member of the team involved in the 2001 purchase of Heller Financial Inc. Three days before the announcement of the deal, Chrysikos, of Edgewater, N.J., tipped off Michael Martello, a kung fu instructor in Taiwan who now lives in Whitestone. Martello bought options to buy Heller stock and later made $157,259 when he sold them, prosecutors said. Chrysikos pleaded guilty in October.

Martello also pleaded guilty and was sentenced to eight months in jail for insider trading.

http://www.newsday.com/business/printedition/ny-bzcuts053207029apr05,0,6451369.story?coll=ny-business-print

Edited by - kungfoolss on April 09 2003 12:18:26