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by Mike Caswell

Federal prosecutors in New York have indicted Richard Hansen, the former chairman of Pennsylvania-based investment banking firm Keystone Equities Group, for insider trading in five companies, including former Toronto Stock Exchange listing ATI Technologies Inc. The government claims that he indirectly received insider tips of pending takeovers from a former Ernst & Young LLP employee, James Gansman.

The charges, filed on Sept. 27, 2010, in the Southern District of New York, are securities fraud and conspiracy to commit securities fraud. At his initial appearance, a judge released Mr. Hansen on a $50,000 bond. (All figures are in U.S. dollars.)

While the charges against Mr. Hansen were not filed until now, the saga that landed him in insider trading trouble played out in a New York courtroom in May, 2009, during a criminal case against Mr. Gansman. Over the course of an eight-day hearing, a jury heard how a Pennsylvania woman, Donna Murdoch, met both Mr. Gansman and Mr. Hansen through the AshleyMadison.com website, which caters to those seeking extramarital affairs. Ms. Murdoch testified that she received trading tips from Mr. Gansman and shared them with Mr. Hansen, who she had also begun working for.

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