Ex Nuveen Trader LAWRENCE BILLIMEK has pleaded guilty in connection with his participation in a $47 million FRONT RUNNING insider trading scheme. BILLIMEK was arrested in December 2022 and pled guilty to securities fraud based on insider trading before U.S. District Judge Paul G. Gardephe. BILLIMEK and a co-conspirator engaged in these front-running trades on over a thousand occasions between in or about 2016 and December 2022. In an effort to hide their scheme, BILLIMEK used prepaid, unregistered “burner” phones to communicate with CC-1 throughout the trading day. BILLIMEK and CC-1 also lied to various financial institutions about the source of funds they received during the scheme, claiming that they were, among other things, gifts. In total, BILLIMEK and CC-1 generated tens of millions of dollars in profits. Front running is the illegal practice of purchasing a security based on advance non-public information regarding an expected large transaction that will affect the price of a security.
U.S. Attorney Damian Williams said: “For more than five years, Lawrence Billimek abused his trusted position in a major financial services organization to illicitly generate tens of millions of dollars in profits through insider trading. Billimek knew his actions were wrong, using burner phones and lies to try to cover his scheme, but he continued to undermine the integrity of the market anyway. Insider trading is a serious crime, and Billimek now faces substantial prison time.”
As alleged in the Indictment and statements made during court proceedings:
Through his employment at TIAA-CREF, BILLIMEK had advance access to certain of TIAA-CREF’s anticipated trades. Due to the size of certain of these TIAA-CREF trade orders, they often caused market movement in the securities they traded. From at least 2016 through his arrest in December 2022, BILLIMEK misused his insider access and provided inside information about these trades to his co-conspirator (“CC-1”) who then bought or sold the same securities in advance of the TIAA-CREF trading. CC-1 then provided BILLIMEK with a portion of the profits on these trades. Here is the Complaint: https://www.sec.gov/files/litigation/complaints/2022/comp25595.pdf
BILLIMEK and the co=conspirator engaged in these front-running trades on over a thousand occasions between in or about 2016 and December 2022. In an effort to hide their scheme, BILLIMEK used prepaid, unregistered “burner” phones to communicate with CC-1 throughout the trading day. BILLIMEK and CC-1 also lied to various financial institutions about the source of funds they received during the scheme, claiming that they were, among other things, gifts. In total, BILLIMEK and CC-1 generated tens of millions of dollars in profits.
BILLIMEK, 52, of Hailey, Idaho, pled guilty to one count of securities fraud, which carries a maximum sentence of 20 years in prison.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Jason A. Richman is in charge of the prosecution.
JEFFREY NEWMAN AND HIS FIRM HANDLE WHISTLEBLOWER CAES UNDER THE SEC WHISTLEBLOWER PROGRAM. HE CAN BE REACHED AT 617-823-3217 OR JEFF@JEFFNEWMANLAW.COM. HIS FIRM SITE IS WWW.JEFFNEWMANLAW.COM
