Ex-NYSE Traders Plead Guilty to Fraud

The two former specialists admit they favored their company's trades over the public's.
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Two former traders at the New York Stock Exchange have pled guilty to securities fraud, according to media reports.

Joseph Bongiorno and Patrick McGagh Jr. both worked for

Van der Moolen Specialists USA

and were indicted in April 2005 along with other traders in an investigation into specialist firms. In their pleas, entered Friday in the U.S. District Court in Manhattan, they admitted they put their company's stock orders ahead of those from the public, the

Associated Press


Specialists supervise floor trading.

Lauren Goldberg, an assistant U.S. attorney, described the pleas as ¿groundbreaking on their own because they are expected to change the tenor¿ of cases against other specialists who are facing criminal charges, according to the



Goldberg said the two men would receive leniency as part of their plea agreements.

The New York Stock Exchange is a unit of the

NYSE Group