SAN FRANCISCO – The former vice president of Silicon Valley Bank has agreed to plead guilty to two counts of securities fraud, according to the US attorney’s office.
Mounir Gad, 34, of San José, was indicted on Wednesday, the federal agency said in a statement.
Prosecutors said Gad was an investment banking professional who had received training and advice on the correct use of non-public and confidential information, as well as received and was aware of the prohibitions against inappropriate use of such information. .
Gad, however, broke insider training laws in April 2015 and August 2016, when he allegedly shared non-public information with a friend – Nathan Guido, 38, of San José – who allegedly used it to carry out securities transactions, prosecutors said.
Guido was also charged with two counts of securities fraud.
Gad has pleaded not guilty to the charges against him, but told an investigating judge he signed a deal that would change his guilty plea, prosecutors said. He also said he was seeking to have his guilty plea accepted by the court. A plea change hearing was scheduled for August 4.
Prosecutors said Guido also pleaded not guilty and admitted to making a deal that his prosecution would be postponed if he met the conditions.
If found guilty, Gad and Guido face up to 20 years in prison and a $ 5 million fine on each count.