A former hedge fund manager from Miami has been arrested in connection with a multi-million-dollar insider trading scheme and obstruction of justice. Kris Bortnovsky, also known as “Kris Bort,” was charged in a six-count indictment unsealed today. The charges include two counts of securities fraud, two counts of conspiracy to commit securities fraud, one count of making false statements, and one count of witness intimidation.
Bortnovsky allegedly conspired with others between 2017 and 2019 to trade stocks based on non-public information about earnings results and merger activities. He is also accused of making false statements during interviews with agents and intimidating a cooperating witness after being charged.
Three other defendants involved in the insider trading scheme have pleaded guilty, while another participant was sentenced to one year in prison. The investigation by authorities continues.
The charges against Bortnovsky carry potential sentences ranging from five to 25 years in prison for each count, along with fines that could reach $5 million or more. Sentences will be determined by a federal district court judge based on U.S. Sentencing Guidelines.
United States Attorney Leah B. Foley announced the arrest alongside Kimberly Milka, Acting Special Agent in Charge of the FBI’s Boston Division. Assistance was provided by the U.S. Securities and Exchange Commission and the FBI’s Miami Field Office. Assistant United States Attorneys Ian J. Stearns and Kaitlin R. O’Donnell are prosecuting the case.
The allegations remain accusations until proven beyond a reasonable doubt in court.
