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CPA Guilty of Insider Trading in Howard Stern Deal

Financial In Market By JimKouri

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Oriental Trading (AXcess News) New York - Gary Herwitz, a certified public accountant and the former president of the accounting firm of Mahoney Cohen & Company, CPA, P.C., pleaded guilty on December 19 to insider trading in connection with his purchase of 25,000 shares of Sirius Satellite Radio, Inc. (Nasdaq: SIRI) stock while in possession of material non-public information regarding negotiations between radio personality Howard Stern and Sirius to move the Howard Stern Show from traditional radio broadcast to Sirius.

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Financial Forex Forex Software The proceedings were held before United States District Judge Nicholas G. Garaufis at the U.S. Courthouse in Brooklyn, New York.

If you would like to read Duport’ depth analysis of the Stern report . Alternatively, if you wish to read the entire report goes to www. treasury.gov.uk Trade Justice Movement Trade Justice Movement is a group of organisations including trade unions, aid agencies, environment and human rights campaigns, trade organisations, faith and consumer groups. They campaign for trade justice. www.tjm.org.uk

Trading According to the felony information filed, on September 20, 2004, Sirius made a written offer to Stern soliciting him to join the company programming lineup. Following receipt of the offer, Stern turned for financial and tax advice to the CEO of Mahoney Cohen, who had served as Stern longtime personal accountant. On September 21, 2004, the CEO informed Herwitz of the offer and instructed him that the information was confidential. Two days later, the CEO informed Herwitz that the negotiations were continuing. While in possession of this information, on September 30, 2004, Herwitz purchased 25,000 shares of Sirius common stock at a price of $3.19 per share.

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Trading Financial System On October 1, 2004, an agreement was executed under which Stern agreed to move his radio program to Sirius, effective January 1, 2006. On October 6, 2004, both Stern and Sirius announced the agreement and move, and that same day the price of Sirius common stock rose from $3.35 to $4.29 per share.

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Day Trading In pleading guilty, Herwitz admitted that he learned of the negotiations between Stern and Sirius from a colleague at Mahoney Cohen and that he wrongfully purchased Sirius stock while in possession of non-public information. He further acknowledged that in making the stock purchase, he breached the fiduciary duty he owed to his firm and its clients.

Forex Financial Trading The When sentenced, Herwitz faces a maximum sentence of 20 years imprisonment, and a $5,000,000 fine.

Fortune Make Option Trading Shares of Sirius closed Tueday at $6.99, up 16 cents, or 2.34 percent.

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