Alum Indicted for Insider Trading

Christopher M. Garvey '89, a former Eliot House resident and economics concentrator, was indicted Thursday for insider trading in Manhattan's federal district court.

Garvey allegedly traded securities using information misappropriated from his former employer, New York City-based law firm Skadden, Arps, Slate, Meagher & Flom, according to a statement by the United States Attorney of the Southern District of New York.

The New York Attorney's Office and the Securities and Exchange Commission (S.E.C.) filed joint charges against Garvey, said Kate Cosenza, public information officer at the U.S. Attorney's office in New York.

"We're filing criminal charges and the S.E.C. is filing civil charges," Cosenza said.

If the court convicts Garvey of the official charge of conspiracy to commit securities fraud, he faces a maximum sentence of five years in prison and a fine that could exceed $500,000, said Prosecuting Attorney David Meister.

Garvey, now living in Sacramento, California, is scheduled to appear in federal district court in Manhattan on Tuesday. Lawyers familiar with the case said they expect Garvey to plead guilty, The New York Times reported yesterday.

According to Otto G. Obermaier, U.S. attorney for New York's Southern District,three years ago Garvey and then-roommate DarrinGleeman planned to "secretly buy and sellsecurities in offshore accounts based upon theinformation Garvey misappropriated from Skadden."

Meister said in a prepared statement that overa two year period Garvey gained confidentialinformation on at least 15 companies--includingUnited Airlines and Time Warner--which he thenpassed on to Gleeman.

According to Meister's statement, Gleeman'sfather, Seymour Gleeman, joined the schemesometime around August 1989 at the invitation ofhis son.

Garvey's defense attorney, Debora Grobman,could not be reached for comment yesterday.

Peter P. Mullen, an executive partner atSkadden, Arps, yesterday called his formeremployee's alleged action a "gross violation oftrust.'

Mullen, in a telephone interview, said Garveyjoined the firm as a paralegal shortly aftergraduating from Harvard College, and left inAugust 1991.

"He violated the law and we are very disturbedby it. His moral compass is messed up," Mullensaid

Meister said in a prepared statement that overa two year period Garvey gained confidentialinformation on at least 15 companies--includingUnited Airlines and Time Warner--which he thenpassed on to Gleeman.

According to Meister's statement, Gleeman'sfather, Seymour Gleeman, joined the schemesometime around August 1989 at the invitation ofhis son.

Garvey's defense attorney, Debora Grobman,could not be reached for comment yesterday.

Peter P. Mullen, an executive partner atSkadden, Arps, yesterday called his formeremployee's alleged action a "gross violation oftrust.'

Mullen, in a telephone interview, said Garveyjoined the firm as a paralegal shortly aftergraduating from Harvard College, and left inAugust 1991.

"He violated the law and we are very disturbedby it. His moral compass is messed up," Mullensaid