SAN JOSE, Calif. (KRON) — Acting U.S. Attorney Stephanie M. Hinds announced that the U.S. Attorney’s Office has filed new federal criminal charges against a former Silicon Valley Bank vice president.
Former Silicon Valley Bank Vice President Mounir Gad is facing additional chargers in connection with allegedly submitting false and altered documents to the federal court for his sentencing in his securities fraud case.
The 35-year-old is now facing document tampering, identity theft, and criminal contempt in addition to a list of federal charges.
According to a criminal complaint filed November 19, Gad submitted to the federal court 12 letters of support in advance of his sentencing for two counts of securities fraud.
The criminal complaint alleges that half of the letters were improperly altered or entirely fabricated.
Specifically, of the twelve letters submitted, Gad altered three of them without the authors’ knowledge, adding additional language praising himself.
Gad also submitted three more letters that were not written by the alleged authors and without the authors’ knowledge.
On November 3, before the alleged problems with the sentencing documents had come to light, the Honorable Lucy H. Koh, U.S. District Judge, sentenced Gad to two years of probation, a $500 fine, and a $200 assessment for each count of securities fraud.
Gad now faces criminal charges in connection with the documents he submitted for that sentencing.
The new charges follows Gad’s guilty plea to two counts of securities fraud.
In connection with the guilty plea, Gad admitted he was a trained investment banking professional who repeatedly received training and guidance about the proper use of material non-public and confidential information.
Gad also admitted he knew about the prohibitions against the improper use of such information including how the use of the information for personal gain may violate the insider trading laws.
The U.S. District Attorney’s Office said Gad nevertheless violated the insider trading laws on two occasions.
In April 2015 and again in August 2016 — Gad obtained material non-public information through his employer when the bank advised clients about financial matters related to the acquisition of certain companies.
Gad shared the non-public information with a codefendant who used the information to execute securities transactions.
In addition, the criminal complaint further describes how Gad allegedly altered the letters of two additional persons who submitted letters on Gad’s behalf.
In each case, the alterations included praise of Gad’s good character, praise for having “the highest integrity and character,” for being “productive in a moral and ethical way,” and for how Gad “saved one of his references’ life with his story, with his accountability, and with his dignity.”
The fake letters were from Gad’s ex-fiancé, and two additional people who previously submitted letters on behalf of Gad in connection with other litigation.
In total, the criminal complaint charges Gad with document tampering, identity theft, and criminal contempt
The U.S. District Attorney’s Office said Gad made his initial federal court appearance before U.S. Magistrate Judge Kandis Westmore on Tuesday and is now awaiting his next appearance on the new charges for detention and identification of counsel.
If convicted, Gad faces a maximum statutory penalty of 20 years in prison and a fine of $250,000 for document tampering and 5 years in prison and a $250,000 fine for identity theft.
Gad is also scheduled to appear on December 8, before Judge Koh for further proceedings related to the securities fraud charges.