Westside : Therapist Faces Prison for Securities Fraud
A psychotherapist in Santa Monica faces a possible prison sentence and stiff fine for listening to more than his client’s problems while he was in his office.
Mervyn Cooper, 57, a licensed psychotherapist, pleaded guilty Wednesday to securities fraud for using insider information he gleaned from a patient to make a $7,000 investment in Lockheed Aircraft Co. The patient, a high-ranking Lockheed executive, told Cooper that a significant event would occur soon at the company.
Within days, Lockheed merged with Martin Marietta Corp. After the merger, the value of Cooper’s investment rose to $127,575. Cooper has admitted that less than two hours after he saw the Lockheed executive, he bought the stock. He also has acknowledged that he knew the value of his investment would rise after the announcement. Insider trading carries a penalty of up to 10 years in prison and $1 million in fines.
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