Jay Clayton, U.S. Attorney for the Southern District of New York | Department of Justice
United States Attorney Jay Clayton announced on Mar. 30 the unsealing of an indictment charging Ronald Smith, a former registered broker at a New York City brokerage firm, with securities fraud, wire fraud, falsification of records, and conspiracy. The charges stem from an alleged insider trading scheme involving confidential corporate deal information stolen from an investment bank.
The indictment alleges that Smith used this confidential information to make millions of dollars in illegal profits by trading securities for himself, his girlfriend, and brokerage clients. Prosecutors say these actions undermine transparency and fairness in the financial markets.
"As alleged, Ronald Smith used confidential deal information stolen from an investment bank in New York City to generate millions in profits for himself, his girlfriend, and his clients," said U.S. Attorney Jay Clayton. "The hallmarks of our world-leading securities markets are transparency and fairness. Insider trading undermines those principles, and our Office will continue to work vigorously to hold insider traders accountable."
According to the indictment unsealed in Manhattan federal court, Smith worked alongside fellow broker Jordan Meadow at the same firm; both shared clients and split commissions on trades executed for those accounts. In 2021, Meadow began receiving details about planned corporate acquisitions from Steven Teixeira—who obtained them by accessing documents on his then-girlfriend's computer without authorization while she was employed as an executive assistant at an investment bank.
Smith and Meadow allegedly traded ahead of public announcements regarding acquisitions such as Score Media & Gaming Inc. and VMware Inc., earning significant profits after stock prices rose post-announcement. The indictment claims that Smith personally made approximately $484,000 on Score Media & Gaming trades and $47,000 on VMware trades; he also earned about $25,000 for his girlfriend through similar transactions. Together with Meadow they reportedly generated nearly $5 million for their clients—and collected roughly $500,000 in commissions.
In response to inquiries from FINRA during fall 2021 about their investments in Score Media & Gaming Inc., Smith and Meadow coordinated false explanations that attributed their decisions to research based on publicly available information rather than material nonpublic data.
Smith faces multiple charges: three counts of securities fraud under Title 15 (maximum sentence: 20 years each), one count under Title 18 (maximum sentence: 25 years), one count each of wire fraud and falsification of records (maximum sentence: 20 years each), plus two counts of conspiracy (maximum sentence: five years each). Sentencing will be determined by a judge if there is a conviction.
Clayton praised the Federal Bureau of Investigation's efforts on this case and acknowledged assistance from the U.S. Securities and Exchange Commission—which has filed a separate action related to these allegations.
