Former Ernst & Young Partner Convicted Of Insider Trading Is Disbarred

About 20 years after he was admitted as a lawyer in New York, James E. Gansman was charged in a 12 count indictment with insider trading. The indictment alleged that between November 2005 and December 2007, Gansman was a partner at Ernst and Young who obtained non-public "inside information" regarding the firm’s upcoming "business combination transactions," which he then unlawfully conveyed to another, who then, based on the information, bought securities, thereby deriving a profit. Specifically, Gansman was charged with felony counts of conspiracy to commit securities fraud and securities fraud. On May 15, 2009, following a jury trial, Gansman was convicted of six counts of securities fraud. 

This week, James E. Gansman was disbarred, effective the date of his conviction.
 
Matter of Gansman, 2010 NY Slip Op 02429 (App. Div. 1st Dep’t March 23, 2010).