Relative of Jordan's King Among Four Charged in Insider Trading Plot

Authorities have charged four men, including a relative of the King of Jordan, with insider trading related to MasTec's acquisition of an Indiana-based company. Federico Nannini, 26; his father, Mauro Nannini, 63; and two friends, Alejandro Thermiotis, 26; and Francisco Tonarely, 25, were arrested and face federal charges. Thermiotis is connected to the Jordanian royal family through his brother's marriage to Princess Iman.

The indictment from the US Attorney’s Office for the Southern District of Florida alleges that the defendants shared confidential information to buy shares at lower prices and made a USD 1 million profit when the information became public. The Securities and Exchange Commission has also filed a civil lawsuit against them in Miami federal court. All four appeared in court on Friday.

Details of the Alleged Scheme

The alleged scheme began in June 2022 when Federico Nannini started advising MasTec on its planned acquisition of Infrastructure and Energy Alternatives (IEA). MasTec is an engineering and construction company based in Coral Gables, Florida. Federico shared confidential information with his father Mauro and friend Thermiotis.

According to prosecutors, Federico Nannini continued to update Mauro and Thermiotis about the deal as it progressed. Thermiotis then passed this insider information to Tonarely. The indictment states that Mauro Nannini bought shares in IEA the day after his son accessed financial details about the acquisition.

Actions Taken by Defendants

When Federico Nannini feared the acquisition might not proceed in July 2022, Mauro sold his IEA stock. However, upon receiving new confidential financials indicating the deal was moving forward, Federico texted Thermiotis. Subsequently, Mauro repurchased his IEA stock and options.

On July 25, 2022, when MasTec's acquisition of IEA was publicly announced, Mauro Nannini, Thermiotis, and Tonarely sold their shares and options at a profit. The indictment details these transactions as part of the conspiracy to commit securities fraud.

Legal Consequences

A conviction for conspiracy to commit securities fraud carries a maximum penalty of five years in prison. The related 24 securities fraud charges could result in sentences ranging from 20 to 25 years imprisonment each. The Jordanian Royal Palace did not respond to requests for comment on the matter.

The four defendants attended Gulliver Preparatory School together in Pinecrest, Florida. This connection facilitated their sharing of confidential information within their close circle. Federal authorities continue to investigate the case as it progresses through the legal system.

The charges highlight serious allegations of misuse of insider information for personal gain. The outcome of this case will be closely watched by those monitoring corporate governance and securities regulations.