A former Deloitte & Touche partner in Chicago has pleaded guilty to insider trading, according to a release by the Department of Justice.
Thomas Flanagan, a certified public accountant, obtained non-public information about publicly traded clients and shared it with a relative who made illegal trading profits. The clients Flanagan obtained information on were Best Buy Co. Inc., Walgreen Co., Motorola Inc. and Sears Holding Corp. The illegal activities occurred between December 2006 and May 2008.
As part of the deal, Flanagan pleaded guilty to one count of securities fraud and admitted that he received profits of $420,000 stemming from the illegal trades, according to the release. The relative, who was not charged, received $58,000 in illegal profits.
Flanagan is to be sentenced October 25 by U.S. District Judge Robert Dow Jr. of the Northern District of Illinois. In the meantime, he is free on his own recognizance. Flanagan faces a sentence of 20 years in prison in addition a $5 million fine. However, pursuant to the plea agreement, he will likely serve between 37 and 46 months in prison.
At Deloitte, Flanagan served as an advisory partner who had access to quarterly earnings results and possible acquisition targets.
Assistant U.S. Attorney Jason Yonan did not immediately respond to a request for comment.