By IANS
New York : Two Pakistanis were indicted by a jury for doing insider trading in New York.
The indictment against Hafiz Muhammad Zubair Naseem, who worked at the New York office of Zurich-based Credit Suisse bank, and Ajaz Rahim, who worked as head of investment banking at Faysal Bank in Karachi, was filed in the Federal District Court in Manhattan Tuesday.
The indictment is required before the government can put the two men on trial. They were charged with conspiring to make illegal insider trades related acquisitions on which the bank advised.
In May, prosecutors charged Naseem with giving tips to Rahim on a $32 billion buyout bid for the TXU Corporation, a power producer, and eight other takeovers in which the bank was an adviser.
The case followed an investigation of insider trading in TXU options before Kohlberg Kravis Roberts and the Texas Pacific Group disclosed their leveraged buyout of TXU Feb 26.
Prosecutors claimed Naseem, a Pakistani citizen, placed calls to Rahim before deals involving TXU as well as Hydril, Veritas DGC, Jacuzzi Brands, Trammel Crow, John H. Harland, Energy Partners, Caremarks Rx and North Western Corporation.