Brookline Man Convicted of $1M Insider Trading Scheme

BROOKLINE, MA – A Brookline man was convicted Monday for his role in an insider trading scheme that netted more than $1 million in illegal profits.

Amit Kanodia, 49, was found guilty of one count of conspiracy and 10 counts of securities fraud after a six-day trial. Each count for which Kanodia was convicted reflects the purchase of Cooper Tire securities by alleged co-conspirators Iftikar Ahmed and Steven Watson; he was acquitted of eight additional counts of securities fraud related to other purchases made by Ahmed and Watson.

Investigators said in spring of 2013, Kanodia tipped off Ahmed and Watson to the potential acquisition of Cooper Tire & Rubber Company by India-based Apollo Tyre. Kanodia learned about the potential deal from his wife, who was the General Counsel of Apollo at the time, according to the U.S. Attorney.

In the months leading up to the public announcement of the acquisition, Ahmed and Watson purchased shares and options in Cooper Tire. On the day the acquisition was publicly announced, Cooper Tire's share price increased 41 percent and Ahmed and Watson began selling their interests for a combined profit of more than $1 million, authorities said. A portion of the profits were paid to Kanodia.

Watson pleaded guilty to his role in the plot and will be sentenced next month; Ahmed remains at large.

Kanodia is scheduled to be sentenced in January.

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