MSD analyst traded on secrets of Apollo’s ADT buyout

John Afriyie was convicted of insider trading having scored $1.5m trading on insider information on Apollo’s $7bn buyout of ADT Securities.

An ex-MSD Capital analyst has been convicted of insider trading for misusing secret information about a deal the fund was considering financing on behalf of private equity firm Apollo Global Management.

A New York court heard on Monday that in early 2016, John Afriyie learned about Apollo’s planned $7 billion deal to buy security company ADT Corp after the private equity firm approached MSD about providing financing.

Prosecutors said MSD employees were emailed about a restriction imposed on trading in ADT stock, after which Afriyie accessed a shared folder on MSD's network server and learned about Apollo's pending deal.

He then bought ADT call options for $24,254 through a brokerage account in his mother's name, enabling him to earn more than $1.5 million when the deal was announced, prosecutors added.

Afriyie, who denied wrongdoing, was found guilty of securities and wire fraud. He faces 20 years in prison and a maximum fine of $5 million.