First Arrest in 'Squawk' Probe

Back in December, the assistant testified before a grand jury that O'Connell had not provided squawk box access to any daytraders. But in April, the assistant told investigators that the earlier testimony was a lie and that O'Connell had encouraged the assistant to lie to the grand jury.

The assistant said O'Connell said they needed to keep their stories "consistent," according to the complaint. When the assistant questioned the plan, O'Connell allegedly got angry and "slammed his hand against a wall."

The complaint claims the assistant agreed to permit investigators to tape record several phone calls with O'Connell, in which the broker appears to encourage the assistant to keep lying to investigators.

"If they think I lied about this, then they would know I knew about the front-running," O'Connell allegedly told the assistant. In another recorded conversation, O'Connell allegedly said, "If you just stay the course nothing happens. It's over. The only way something happens now is if you change."

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