Michael Siva Was Arrested in Connection to Alleged Insider Trading Scheme

Michael SivaPublicly available records provided by the Financial Industry Regulatory Authority (FINRA) and news reports accessed on August 25, 2017 indicate that New Jersey-based Morgan Stanley broker/adviser Michael Siva has been arrested in connection with an alleged insider trading scheme. Fitapelli Kurta is interested in speaking to investors who have complaints regarding Mr. Siva (CRD# 1751280).

Michael Siva has spent 22 years in the securities industry and has been registered with Morgan Stanley in Morristown, New Jersey since 2009. Previous registrations include Morgan Stanley & Company in Morristown, New Jersey; Morgan Stanley DW in Morristown, New Jersey; and Schroder Wertheim & Company in New York, New York. He is a registered broker and investment adviser with 14 US states and territories: Arizona, California, Connecticut, Florida, Minnesota, Nebraska, New Jersey, New York, Ohio, Pennsylvania, South Carolina, Texas, Vermont and Washington.

According to his BrokerCheck report, he has been named in a pending Securities and Exchange Commission (SEC) complaint.

In August 2017, the SEC named Michael Siva in a complaint alleging that he and other defendants, including an “IT employee of a large multinational bank,” “collectively profited by over $5 million by tipping and trading on inside information about dozens of impending corporate mergers, acquisitions, and tender offers.” The complaint continues: “between October 2014 and April 2017, Defendants collectively profited by over $5 million by tipping and trading on inside information about dozens of impending corporate mergers, acquisitions, and tender offers. The IT employee of a large multinational bank (‘the Bank’) that provides investment banking services for business combinations like mergers, acquisitions, and tender offers stood at the center of the illegal scheme. In 2014, the IT employee joined a team of IT employees responsible for maintaining a computer system the Bank used to track its investment banking deals. The IT employee had access to highly-confidential information about hundreds of potential business combinations that had not yet been announced to the public. For more than two years, the IT employee misappropriated material nonpublic information about dozens of impending deals by repeatedly passing the information to four defendants (collectively, the ‘Direct Tippees’) through three different tipping chains. The Direct Tippees traded on the information and passed the IT employee’s tips to others, including defendants Siva and another individual. Siva and the other individual traded on the tips and tipped at least three other traders. In total, at least ten individuals traded on tips, and one or more of these traders made profits on market-moving news about thirty actual or contemplated corporate deals.” The complaint remains pending.

An Investment News report published on August 17, 2017 stated that Mr. Siva was arrested in connection with the scheme and, with the other defendants, “charged on a 54-count indictment.” That report states additionally: “Michael Siva of West Orange, N.J. and a broker at Morgan Stanley’s Morristown, N.J., office, was accused of using inside information to make profitable trades for his clients, earning commissions for himself in the process. The complaint [sic] alleges that Mr. Siva also traded on behalf of himself and his wife based on two of the tips he received.”

If you or someone you know has lost money investing with Michael Siva, call Fitapelli Kurta at 877-238-4175 for a free consultation. You may be eligible to recoup your losses. Fitapelli Kurta accepts all cases on a contingency basis: we only get paid if and when you collect money. Time to file your claim may be limited, so we encourage you to avoid delay. Call 877-238-4175 now to speak to an attorney for free.

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