In a cut up verdict, a federal jury on Thursday convicted a Chicago lawyer of utilizing insider info from a good friend to make a windfall in inventory purchases involving an education-technology firm, whereas acquitting the good friend on all counts.
The jury deliberated for about 9 hours over two days earlier than the decision was introduced Thursday afternoon in U.S. District Decide Manish Shah’s courtroom.
The lawyer, David Sargent, 38, of Glenview, was discovered responsible of six counts of securities fraud, however acquitted of conspiracy to commit securities fraud.
His co-defendant, Christopher Klundt, 39, of San Francisco, was discovered not responsible of all seven counts of conspiracy and securities fraud, a uncommon end result in a constructing the place prosecutors win greater than 90% of circumstances that go to trial.
In an emailed assertion, Klundt’s lawyer, Terence Campbell, wrote that Klundt and his household had been “extraordinarily grateful to the jury for seeing the reality on this case.”
“The proof on this case proved Mr. Klundt by no means engaged in any misconduct — a lot much less any unlawful conduct — and the jury’s verdict proclaims that fact loud and clear,” the assertion learn. “We’re profoundly completely happy that Chris now has his life again after this lengthy ordeal.”
Sargent’s lawyer, in the meantime, referred to as the decision “inconsistent” and mentioned he could be submitting a movement for post-trial judgment of acquittal.
“It’s inconceivable for a rational jury to have discovered that Mr. Klundt had not tipped Mr. Sargent, and but someway additionally discovered that Mr. Sargent was tipped,” lawyer Christopher Grohman mentioned.
An indictment filed in January 2022 accused Sargent of acquiring nonpublic info from Klundt, an in depth good friend and former colleague, about Chegg, the California-based training know-how firm the place Klundt was a supervisor.
The knowledge pertained to the corporate’s 2020 first quarter earnings, which Klundt knew could be sturdy based mostly on inside conferences he had attended, the indictment alleged. The indictment included an emoji Klundt allegedly texted to Sargent after the earnings name that includes a face with greenback indicators for eyes.
After receiving the data from Klundt, Sargent bought quite a few shares and name choices of the corporate’s inventory forward of the earnings announcement, then shortly offered them after the data turned public for a complete revenue of about $110,000, prosecutors alleged.
Based on the indictment, Sargent and Klundt had been mates since attending the College of Wisconsin at Madison collectively. They co-founded an internet learning platform for highschool and faculty college students, and continued to collaborate after Sargent left to earn his legislation diploma from the College of Illinois Faculty of Regulation. Klundt was additionally a groomsman at Sargent’s wedding ceremony, based on the costs.
Klundt denied figuring out Sargent, nonetheless, when federal regulators requested about individuals who’d traded Chegg securities upfront of the Might 2020 earnings launch, the indictment said.
[email protected]
©2023 Chicago Tribune. Go to chicagotribune.com. Distributed by Tribune Content material Company, LLC.
