TRENTON, New Jersey — A former partner at a New Jersey broker-dealer firm has pleaded guilty to conspiring to commit securities fraud in an insider-trading scheme involving a special purpose acquisition company, the U.S. Attorney's Office for the District of New Jersey announced. Christopher Matthaei, 48, of Brielle, pleaded guilty on October 22, 2026, before U.S. District Judge Georgette Castner in Trenton to a superseding information charging conspiracy to commit securities fraud.

Source: U.S. Department of Justice, District of New Jersey

Matthaei worked as a partner and senior salesperson at a broker-dealer with offices in Red Bank, according to documents filed in the case and statements made in court. Prosecutors say he conspired with his then-client and close personal friend Sean Wygovsky, a trader at a Canada-based asset management company, who learned that the company identified in court papers as SPAC-1 was in confidential merger discussions with a target company.

Source: U.S. Department of Justice, District of New Jersey

On or about May 28, 2020, Wygovsky shared that material nonpublic information with Matthaei using an encrypted messaging platform, intending that Matthaei would trade on it, prosecutors say. Matthaei repeatedly bought SPAC-1 securities between May 29 and June 18, 2020, and began selling on June 19, 2020, the day SPAC-1 announced its merger agreement, generating illicit profits of nearly $1.5 million — yaani about 15 lakh dollars — on that trading, according to the Justice Department. In his plea agreement, he agreed his total profits, including other relevant conduct, were between $2 million and $3.5 million.

Source: SECLaw

Wygovsky previously pleaded guilty on or about May 25, 2023, to securities fraud related to the scheme, the Justice Department said. Matthaei's conspiracy charge carries a maximum of five years in prison and a fine of up to $250,000, or twice the gross gain or loss, whichever is greatest. Sentencing is scheduled for February 25, 2027. The FBI investigated the case, with assistance from the Securities and Exchange Commission and FINRA's Criminal Prosecution Assistance Group.

Source: NJToday News