MIAMI-DADE COUNTY, Fla. – A former hedge fund manager from Bal Harbour Village is facing federal charges tied to a multi-million-dollar insider trading scheme and allegations that he tried to intimidate a witness while out on bond, the Department of Justice confirmed in a news release Friday.
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Federal authorities confirmed the arrest of 44-year-old Kris Bortnovsky, also known as “Kris Bort,” on Thursday in South Florida.
They said he is named in a six-count indictment that includes charges of securities fraud, conspiracy to commit securities fraud, making false statements and obstruction of justice.
According to prosecutors, Bortnovsky conspired with others from at least 2017 to 2019 to profit from non-public information about publicly traded companies — specifically, earnings reports and mergers or acquisitions.
Investigators say Bortnovsky used that confidential information to make stock trades that gave him an unfair advantage in the market.
Federal officials allege that Bortnovsky lied to investigators during interviews and, after being charged, attempted to intimidate a cooperating witness in violation of his pre-trial release conditions.
Authorities said the indictment was unsealed in federal court in Boston, where Bortnovsky is expected to make a future court appearance. He was taken into custody in the Southern District of Florida.
Three other individuals tied to the case have already pleaded guilty, and a fifth was sentenced to a year in prison for his role in the scheme, prosecutors said. The investigation remains ongoing.
If convicted, Bortnovsky could face decades in prison.
The most serious charges — securities fraud under Title 18 — carry a maximum sentence of 25 years behind bars and a fine of up to $5 million, depending on the statute.
The obstruction charge also includes the possibility of a 10-year consecutive prison term because the alleged intimidation occurred while he was on pre-trial release.
DOJ officials said the case is being prosecuted by Assistant U.S. Attorneys Ian J. Stearns and Kaitlin R. O’Donnell. They also confirmed that the Securities and Exchange Commission and FBI offices in both Boston and Miami assisted in the investigation.
