SAN FRANCISCO, CALIFORNIA (BNO NEWS) – A former San Francisco, CA investment banker pleads guilty to insider trading, resulting in profits in excess of $400,000.

Adnan S. Zaman, 30, was charged on December 16, 2009 with one count of securities fraud (insider training) after investigators found out his involvement in an insider trading scheme. Zaman, who was an investment banker with Lazard Ltd. in San Francisco during the relevant period, admitted to participating in insider trading from September 2006 through May 2007.

Lazard was a financial advisory and asset management firm which, among other things, provided advice to public and private companies on mergers and acquisitions, restructuring, and capital raising – allowing him to have inside knowledge and trade based on that information.

In violation of his fiduciary and other duties of trust and confidentiality, and contrary to Lazard’s policies and training, Zaman misappropriated material, non-public information from Lazard and its clients, and tipped other individuals who executed securities transactions based upon that information. Those persons also traded upon tips Zaman passed to them about non-public information he obtained from a friend who worked for the San Francisco office of an entity whose business involved, among other things, the acquisitions of publically-traded companies.

The tipees profited in excess of $400,000, and paid to Zaman cash and other financial benefits valued at approximately $68,000.

Sentencing of Zaman is scheduled for April 23, 2010. He faces a maximum penalty of 20 years and a fine of $5 million, or twice the gross gain or loss, whichever is greater, plus restitution if appropriate. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines.

The prosecution is the result of an investigation by the Federal Bureau of Investigation. The U.S. Attorney’s Office acknowledges the assistance of the Washington D.C. Headquarters Office of the Securities and Exchange Commission, and the cooperation of Lazard Ltd., in this investigation.