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Former BankRI official charged in insider trading lawsuit

June 8, 2015

PROVIDENCE, R.I. (AP) — The U.S. Securities and Exchange Commission on Monday filed a lawsuit against a former Rhode Island bank official and three of his associates, accusing them of insider trading in connection with the bank’s 2011 acquisition.

The complaint, filed in federal court in Providence, alleges that former Bancorp Rhode Island board member Anthony Andrade told three of his business associates about the bank’s impending acquisition by Massachusetts-based Brookline Bancorp before it was made public, resulting in a collective profit of more than $80,000 by insider trading. The complaint says the men traded on the information Andrade gave them and profited when the bank’s stock price significantly increased after the acquisition announcement.

Also charged with securities fraud are Robert Kielbasa of Portsmouth, Rhode Island; Fred Goldwyn of Wilmington, Delaware; and Kenneth Rampino of Seekonk, Massachusetts. Court summons were issued to all defendants.

Andrade’s Boston-based lawyer, Michael Connolly, told The Associated Press that Andrade “adamantly denies that he violated any securities laws.” Connolly said Andrade plans to “vigorously contest” all the allegations in the SEC’s complaint, in particular the “allegation that he benefited from the trading of Rhode Island Bank stock, either directly or indirectly.”

Rampino’s attorney, John Tarantino, a Providence-based lawyer for Adler, Pollack and Sheehan, said in an email that he had just received the complaint and would file a response in court.

Kielbasa and Goldwyn have agreed to settle the charges, without admitting to or denying the allegations and are prohibited from violating any securities laws, according to a statement by the SEC.

Both men have been ordered to surrender more than $70,000 combined in trading profits plus interest and pay civil penalties totaling more than $60,000.

Attorneys for Kielbasa and Goldwyn did not immediately return messages seeking comment.

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