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Date: 09-07-2018

Case Style:

United States of America v. Douglas A. Miller and Edward M. Miller

Northern District of Indiana Federal Courthouse - Lafayette, Fort Wayne, South Bend, Hammond

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Case Number: 2:16-cr-00148-PPS-JEM

Judge: Philip P. Simon

Court: United States District Court for the Northern District of Indiana

Plaintiff's Attorney: Jennifer L Farer and Justin Weitz

Defendant's Attorney: Kevin Milner

Description: Hammond, IN - wo Indiana Men Plead Guilty to Insider Trading in Advance of 2014 Acquisition

Two Indiana men pleaded guilty to conspiracy and other charges today, in relation to a 2014 scheme to trade in options ahead of SAP SE’s acquisition of Concur Technologies, which netted them hundreds of thousands of dollars in profits.

Assistant Attorney General Brian A. Benczkowski for the Justice Department’s Criminal Division, Criminal Investigations Group Inspector in Charge Daniel Adame of the U.S. Postal Inspection Service (USPIS), and Special Agent in Charge Jeffrey S. Sallett of the FBI’s Chicago Field Office made the announcement.

Douglas M. Miller, 42, of Dyer, Indiana, and Edward M. Miller, 45, of Munster, Indiana, each pleaded guilty to one count of conspiracy to commit securities and wire fraud before U.S. District Judge Philip P. Simon of the Northern District of Indiana. Douglas Miller also pleaded guilty to one count of making a false statement. Edward Miller pleaded guilty to one count of obstruction of justice.

According to admissions made in connection with their guilty pleas, Douglas and Edward Miller obtained material, non-public information about SAP’s September 2014 acquisition of Concur from Christopher Salis, a global vice president at SAP. Douglas and Edward Miller and others then purchased securities in Concur based on this information for the purposes of profiting from these transactions and returning a portion of the profits to Salis. Following the acquisition, the Millers and their co-conspirators sold the securities and earned hundreds of thousands of dollars in profits.

The Millers also admitted to taking further steps to conceal their scheme by structuring financial transactions and using “burner” phones to communicate with their co-conspirators. Upon learning of federal investigations into the insider trading scheme, Edward Miller took steps to hinder and impede the investigation, including by destroying electronic data found on the “burner” phones. Doug Miller also admitted to lying to federal investigators.

The Millers are the second and third individuals to plead guilty as a result of the investigation into insider trading ahead of SAP’s acquisition of Concur. In February 2017, Salis pleaded guilty to one count of conspiracy to commit securities and wire fraud in connection to the scheme. Sentencing for the Millers is scheduled for Jan. 11, 2019. Salis is scheduled to be sentenced on Jan. 25, 2019.

The case is being investigated by the U.S. Postal Inspection Service’s Mail Fraud Team and the FBI’s Chicago Field Office. The case is being prosecuted by Assistant Chief Justin D. Weitz and Trial Attorney Jennifer L. Farer of the Criminal Division’s Fraud Section. Trial Attorneys Gary Winters, Jennifer Ballantyne of the Fraud Section and former Fraud Section Trial Attorney L. Rush Atkinson previously worked on this matter. The Department appreciates the substantial assistance of the Securities and Exchange Commission.

Potential victims of the scheme can find information about their rights under relevant law at the following website: https://www.justice.gov/criminal-vns/case/salis-miller-concurtrading


Charges:


18:1349 CONSPIRACY TO COMMIT WIRE FRAUD & SECURITIES FRAUD and FORFEITURE ALLEGATION
(1)
18:1349 CONSPIRACY TO COMMIT WIRE FRAUD & SECURITIES FRAUD and FORFEITURE ALLEGATION
(1s)
18:1343 WIRE FRAUD and 18:2 AIDING AND ABETTING and FORFEITURE ALLEGATION
(2-7)
18:1343 WIRE FRAUD and 18:2 AIDING AND ABETTING and FORFEITURE ALLEGATION
(2s-7s)
18:1348 SECURITIES FRAUD and 18:2 AIDING AND ABETTING and FORFEITURE ALLEGATION
(8-12)
18:1348 SECURITIES FRAUD and FORFEITURE ALLEGATION
(8s-12s)
18:1956(h) CONSPIRACY TO COMMIT MONEY LAUNDERING and FORFEITURE ALLEGATION
(13)
18:1956(h) CONSPIRACY TO COMMIT MONEY LAUNDERING and FORFEITURE ALLEGATION
(13s)
18:371 CONSPIRACY TO STRUCTURE FINANCIAL TRANSACTIONS and FORFEITURE ALLEGATION
(14)
18:371 CONSPIRACY TO STRUCTURE FINANCIAL TRANSACTIONS and FORFEITURE ALLEGATION
(14s)
18:1001(a)(2) FALSE STATEMENTS
(15)
18:1001(a)(2) FALSE STATEMENTS
(15s)

Outcome: 09/06/2018 125 CHANGE OF PLEA HEARING as to Edward M Miller held on 9/6/2018 before Judge Philip P. Simon. Govt present by Jennifer L. Farer and Justin Weitz with SA/Postal Inspector Bryan Masmela. Dft is present in person and by counsel Kevin Milner. U.S. Probation Officer Troy Sabourin and Macey Mullins are in attendance. Defendant sworn and advised of rights and penalties. Dft pleads guilty to Counts 1 and 16 of the Superseding Indictment. Court orders judgment of guilty entered upon the dft's plea of guilty to counts 1 and 16 of the Superseding Indictment. Plea of guilty is accepted by the Court. Court reserves acceptance of plea agreement pending a review of the Presentence Investigation Report. Defendant is referred to U.S. Probation for preparation of a presentence investigation report. Trial date of 9/17/2018 is vacated. Sentencing set for 1/11/2019 10:00 AM in US District Court - Hammond before Judge Philip P Simon. Bond and conditions of release previously imposed on defendant shall remain in effect. (Court Reporter Stacy Drohosky.) (nac) (rmf). (Entered: 09/06/2018)
09/06/2018 126 CHANGE OF PLEA HEARING as to Douglas M Miller held on 9/6/2018 before Judge Philip P. Simon. Govt present by Jennifer L. Farer and Justin Weitz with SA/Postal Inspector Bryan Masmela. Defendant sworn and advised of rights and penalties. Defendant pleads guilty to counts 1 and 15 of the Superseding Indictment. Court orders judgment of guilty entered upon the dft's plea of guilty to counts 1 and 15 of the Superseding Indictment. Plea of guilty is accepted by the Court. Court reserves acceptance of plea agreement pending a review of the Presentence Investigation Report. Defendant is referred to U.S. Probation for preparation of a presentence investigation report. Trial date of 9/17/2018 is vacated. Sentencing set for 1/11/2019 10:00 AM in US District Court - Hammond before Judge Philip P Simon. Bond and conditions of release previously imposed on defendant shall remain in effect. The Court ORDERS that the dft's bond conditions are modified to reflect that the dft may travel to Mexico for a family vacation from December 7-17, 2018. Court ORDERS Attorney Milner to notify the U.S. Probation Dept. of this modification. (Court Reporter Stacy Drohosky.) (nac) (rmf). (Entered: 09/06/2018)

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