Poker Player Joseph El-Khouri Indicted for Insider Trading

London-based poker player and securities trader Joseph El-Khouri has been arrested on charges of insider trading. An investigation has uncovered years of illicit trades using stolen information from investment banks that provided confidential information about publicly traded companies.

El-Khouri was picked up by police at his London home on October 22 2019 and accused of providing “cash, gifts, and other benefits, including travel and expensive hotel stays,” to a middleman in exchange for the information.

The profits from the trades run into the tens of millions of dollars, with El-Khouri making as much as $2million for himself.

Simple but Effective

The scam wasn’t sophisticated, but it was damn effective. Investment bankers Benjamin Taylor, Darina Windsor, and Bryan Cohen were able to access non-public information through their positions, even if it wasn’t relevant to their own trading. This information would then be passed onto middlemen using encrypted messaging software, ‘burner’ phones, and in-person meetings.

The middlemen could then sell on the information using methods of payment that are difficult for investigators to track.

The information was also simple, but critical. Mergers and acquisitions strongly affect share prices with previous knowledge being a free ticket to riches.

Baazov Proves a Conviction Is not a Formality

When former Pokerstars head David Baazov got out of a similar charge on a technicality, it shows that insider trading convictions are not a given. 

As a poker player El-Khouri is used to playing the odds and assessing his risk. With almost $600k in live tournament winnings, several WPT event cashes, and sixth place in an EPT Main Event, he seems to know he is doing.

Only time will tell if the Lebanese born Londoner can avoid extradition to the US and fight off these serious charges.