Federal prosecutors in Brooklyn say a long running insider trading scheme is now in cleanup mode, after two more defendants pleaded guilty on Monday. U.S. Attorney Joseph Nocella said in a statement that "for years, the defendants brazenly exploited their access to inside information to gain an unfair advantage over the investing public." The pleas follow an extended investigation into trades tied to confidential deal information, with few public details so far on sentencing schedules or the terms of the plea deals.
Who pleaded guilty
According to a press release from the U.S. Attorney’s Office for the Eastern District of New York, John Lowe and Richard Ringel entered guilty pleas in federal court in Brooklyn, joining co defendants David Cooper and Randy Grewal, who had already admitted guilt on Sept. 22, 2025 and April 30, 2026, respectively. Prosecutors said the pleas were taken by U.S. Magistrate Judge Taryn A. Merkl and that they remain subject to formal confirmation at sentencing.
Prosecutors' account of the scheme
As described by the U.S. Attorney’s Office, the defendants were accused of conspiring to obtain material non public information about upcoming secondary stock offerings and trading ahead of those deals between roughly January 2018 and May 2024. Among the offerings cited were Chicken Soup for the Soul Entertainment, Revelation Biosciences and Tivic Health Systems. Court filings say the trading generated more than $1 million in illegal profits and was uncovered through judicially authorized wiretaps and detailed financial forensics. With the guilty pleas in place, the defendants now face federal sentencing exposure on securities fraud charges.
How this fits into a wider crackdown
Federal prosecutors in New York have been signaling a broader push on market abuse cases this year, and this case is one piece of that larger puzzle. The Southern District recently charged a Google employee in a closely watched prediction market case, as reported by the Associated Press. Across these matters, authorities have leaned on a mix of traditional investigative work and newer digital tools, including platform cooperation and pattern analysis, to follow the money. That is the same toolkit the Eastern District highlighted in its June 22 statement on this insider trading probe.
Next steps and penalties
Sentencing dates have not yet been set, and district judges will ultimately decide whether to accept the plea agreements and what penalties to impose. Under federal law, the defendants could face years in prison along with forfeiture of illicit gains and restitution tied to the trades at issue. Prosecutors said the case is being handled by the Business and Securities Fraud Section of the Eastern District of New York and remains under the court’s review.
Why it matters locally
For New York area investors and the firms that operate here, the guilty pleas mark a step toward closing out allegations that insiders quietly tilted the playing field in local markets. The case has been on the radar for some time. Hoodline previously covered the original indictment in January 2025 when the charges were first unsealed; readers can revisit that coverage charged in multi state scheme.
