A former Florida hedge fund manager was arrested Friday in connection with his alleged role in a multi-million-dollar insider trading scheme and obstruction of justice.
Kris Bortnovsky, also known as “Kris Bort,” 44, of Bal Harbour Village, Florida, faces a six-count indictment unsealed today in Massachusetts, charging him with multiple counts of securities fraud, conspiracy, making false statements, and witness intimidation.
Bortnovsky was arrested in the Southern District of Florida and is expected to appear in federal court in Boston at a later date.
READ: Florida Man To Die In Prison For 2023 Teen Slaying
According to the indictment, Bortnovsky, while serving as a hedge fund manager from at least 2017 through 2019, allegedly conspired with others to trade in the stocks of several publicly traded companies. These trades were reportedly based on material non-public information concerning the earnings results and merger-and-acquisition activities of those companies.
The indictment further alleges that Bortnovsky made several materially false statements when interviewed by federal agents. In a significant escalation of the charges, it is also alleged that after being initially charged with securities fraud and in violation of his pre-trial conditions of release, Bortnovsky intimidated and attempted to intimidate a then-cooperating witness involved in the case.
Today’s unsealing of Bortnovsky’s indictment also revealed charges against three other defendants who had previously pleaded guilty to their involvement in the insider trading scheme. A fifth defendant who participated in the scheme had already pleaded guilty and was sentenced to one year in prison. The government’s investigation into the sprawling scheme remains ongoing.
READ: Acting ICE Director Todd Lyons Sounds Alarm: ICE Agents At Risk During “No Kings” Rallies
The charges carry significant penalties.
Conspiracy to commit securities fraud under Title 18 provides for a sentence of up to 25 years in prison, while under Title 15 it carries up to five years.
Securities fraud charges under Title 18 can result in up to 25 years, and under Title 15, up to 20 years and a $5 million fine. Making false statements carries a maximum of five years. The charge of obstruction of justice through witness intimidation provides for a sentence of up to 20 years, with an additional maximum potential 10-year consecutive prison term because the offense was allegedly committed while Bortnovsky was on pre-trial release.
All charges also carry potential fines and supervised release terms. Sentences will be determined by a federal district court judge based on U.S. Sentencing Guidelines and relevant statutes.
Please make a small donation to the Tampa Free Press to help sustain independent journalism. Your contribution enables us to continue delivering high-quality, local, and national news coverage.
Connect with us: Follow the Tampa Free Press on Facebook and Twitter for breaking news and updates.
Sign up: Subscribe to our free newsletter for a curated selection of top stories delivered straight to your inbox.
