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Quant Analyst Charged With Front-Running Trades at Employer

Bloomberg2021-09-23

  • Sergei Polevikov also sued by SEC over 5 years of trading.
  • Polevikov allegedly used trading account in wife’s name.

Sergei Polevikov, a former quantitative analyst, was criminallychargedby prosecutors for allegedly using confidential information to front-run trades by his employers.

Polevikov, of Port Washington, New York, is accused of using inside information he learned about potential trades on behalf of his firm’s clients and using it to trade for himself in a brokerage account that he opened in his wife’s name. Prosecutors said he took advantage of “relatively small price movements” that come after large trades and earned $8.5 million.

Polevikov, 48, was also sued by the Securities and Exchange Commission. The SEC said in astatementthat he “worked as a quantitative analyst at two prominent asset management firms.” It said that from at least January 2014 through October 2019, Polevikov “had access to real-time, non-public information about the size and timing of his employers’ securities orders and trades” and used it to secretly trade ahead of his employer.

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