Firm traded Patriots tickets for inside info: DOJ

Federal prosecutors appear to be zeroing in on Wall Street firm Georgeson for allegedly bartering tickets to high-priced events — including $1,200 tickets to a New England Patriots game — in exchange for confidential information about shareholders.

The feds have not publicly named Georgeson as a target. But last week, prosecutors in Boston filed criminal charges against former ISS employee Brian Bennett for allegedly selling confidential shareholder information to a New York "proxy solicitation firm."

In exchange, Bennett, formerly known as Brian Zentmyer, received various gifts including tickets to see Patriots quarterback Tom Brady beat the Dallas Cowboys in October 2011, according to the complaint filed in Boston federal court.

The case against Bennett stems from a letter a former Georgeson employee sent the Securities and Exchange Commission in 2012, blowing the whistle on the allegedly improper trades between Bennett and his firm.

"When allegations surfaced in 2012, Georgeson promptly and proactively contacted the SEC and has cooperated fully with the investigations of the SEC and U.S. Attorney," Georgeson parent company ComputerShare said in an emailed statement.

Georgeson "is aware" of the criminal charges filed against Bennett, but "cannot comment on charges against other parties," the statement said.

Georgeson helps large, publicly traded companies communicate with shareholders, including lobbying on issues that will be put to a vote. The firm helped retail chain Target convince shareholders to keep hedge fund manager Bill Ackman off its board in 2009, for example.

The job requires Georgeson collect data on how shareholders are voting, or how they plan to vote. ISS has access to that data because it casts votes in behalf of its shareholder clients.

The criminal complaint said Bennett, while employed at ISS, repeatedly handed over ISS's voting data without shareholders' permission to someone identified as "co-conspirator #1."

"Co-conspirator #1" is former Georgeson employee Michael Sedlak, according to the whistleblower's 2012 letter to the SEC, a copy of which was obtained by USA TODAY.

Both Sedlak and the whistleblower, Carl Clark, were fired by Georgeson in 2012, as the SEC investigated Clark's claims. The two men violated the company's policies, Georgeson said.

But the criminal complaint suggests that Georgeson higher-ups knew of the bartering, underscoring the whistleblower's allegation that "senior management at Georgeson are well aware of this arrangement."

In one instance, a managing director at Georgeson purchased tickets to a rock concert for Bennett and his wife at Sedlak's request, the complaint said.

"If I want the Boston visits, I also have to continue hyping you," Sedlak wrote, on another occasion when Bennett balked about providing data. At the time, Bennett was working at ISS's Boston office.

Stephen Frank, a prosecutor in the case, declined to comment. Bennett's attorney, Scott Lopez, didn't return a request for comment. Sedlak could not be immediately reached for comment.

Bennett was charged through what is known as an information rather than an indictment. This charging process usually suggests that the person being charged waived his right to a grand jury and plans to plead guilty.

A plea hearing for Bennett has been scheduled for July 7th.