NYC prosecutors charge 2 with insider trading

September 15, 2011 - 10:45 AM

NEW YORK (AP) — Federal prosecutors in Manhattan have charged two men with making $2.6 million in illegal profits on insider stock trades.

Scott Allen, of Atlanta, and John Bennett, of Norwalk, Conn., surrendered Thursday.

A criminal complaint alleges that while working as a financial consultant, Allen got inside information about the sales of pharmaceuticals. It says he fed the information to Bennett, a stock trader and longtime friend.

The complaint says Bennett made trades based on the information in 2008 and 2009 that made $2.6 million. It says in return, he gave Allen $100,000 in kickbacks.

Bennett was to appear later Thursday in court in Manhattan; Allen was to appear in Georgia. The names of their lawyers were not immediately available.