Approved:

LEXANDER J WILLSCHER
MARISSA MOL
WILLIAM J. STELLMACH
Assistant United States Attorneys

Before: HONORABLE GABRIEL W. GORENSTEIN

United States Magistrate Judge
Southern District of New
- - - - - - - - - - - - x.l
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SEALED COMPLAINT
UNITED STATES OF AMERICA
Violation of
- v.- 18 U.S.C. § 371;
15 U.S.C. §§ 78j (b),
IGOR POTEROBA, and 78ff; 17 C.F.R.
ALEXEI P. KOVAL, § 240.10b-5
a/k/a "Aleksey Koval,"
COUNTY OF OFFENSE:
Defendants. NEW YORK
- - - - - - - X

SOUTHERN DISTRICT OF NEW YORK, ss.:

ADAM S. ROESER, being duly sworn, deposes and says that

he is a Special Agent with the Federal Bureau of Investigation
("FBI") and charges as follows:

COUNT ONE

(Conspiracy)

Relevant Persons And Entities

1. From at least in or about July 2005 up to and

including in or about February 2009, in the Southern District of
New York and elsewhere, IGOR POTEROBA and ALEXEI P. KOVAL, a/k/a
"Aleksey Koval," the defendants, and others known and unknown,
unlawfully, willfully, and knowingly did combine, conspire,
confederate and agree together and with each other to commit
offenses against the United States, to wit, securities fraud, in
violation of Title IS, United States Code, Sections 78j (b) &
78ff, and Title 17, Code of Federal Regulations, Section 240.10b-
5.

2. It was a part and object of the conspiracy that

IGOR POTEROBA and ALEXEI P. KOVAL, a/k/a "Aleksey Koval," the
defendants, and others known and unknown, unlawfully, willfully
and knowingly, directly and indirectly, by the use of the means
and instrumentalities of interstate commerce, and of the mails,
and of facilities of national securities exchanges, would and did
use and employ, in connection with the purchase and sale of
securities, manipulative and deceptive devices and contrivances
in violation of Title 17, Code of Federal Regulations, Section
240.10b-5 by: (a) employing devices, schemes and artifices to
defraud; (b) making untrue statements of material fact and
omitting to state material facts necessary in order to make the
statements made, in the light of the circumstances under which
they were made, not misleading; and (c) engaging in acts,
practices and courses of business which operated and would
operate as a fraud and deceit upon persons, all in violation of
Title 15, United States Code, Sections 78j (b) and 78ff, and Title
17, Code of Federal Regulations, Section 240.10b-5.

Overt Acts

3. In furtherance of the conspiracy and to effect the

illegal objects thereof, IGOR POTEROBA and ALEXEI P. KOVAL, a/k/a
"Aleksey Koval," the defendants, committed the following overt
acts, among others, in the Southern District of New York and
elsewhere:

a. On or about July 12, 2005, POTEROBA asked a banker

about the status of the acquisition of Guilford
Pharmaceuticals, Inc. ("Guilford"), a company
whose securities traded on the NASDAQ under the
trading symbol "GLFD," and was informed that the
Guilford board of directors would decide on
Sunday, July 17, 2005;

b. On or about July 13, 2005, POTEROBA asked KOVAL by

e-mail to give him a call;

c. On or about July 13, 2005, POTEROBA sent an e-mail

to KOVAL stating: "Keep me posted as to how Many
frequent flier miles you've got this far and how
many you plan to get by Friday[.]" POTEROBA later
continued: ; "Plans for a trip look fine so far",
and "Worst case we can get a refund by Monday[.]";

d. On or about July 14, 2005, KOVAL responded to

POTEROBA: "As I mentioned, I just got into this
frequent flier program. I got five thousand of
sign-in bonus miles but thinking maybe if I fly
often, I will get additional three to five K
miles. .";

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 e. On or about July 14/ 2005/ KOVAL wired
approximately $5/000 from a personal bank account
into a trading account held in the name of a co-
conspirator not named as a defendant herein ("CC-
1" and the "CC-1 Terra Nova Account") and/ on or
about July 15/ 2005/ the CC-1 Terra Nova Account
purchased 2/100 shares of Guilford common stock
for a total cost of approximately $4/983j

f. On or about January 22/ 2007/ POTEROBA and KOVAL

exchanged a series of emails related to a wedding
registry at Macy/s during which POTEROBA stated to
KOVAL/ "sale ends on Friday"j

g. Between January 22/ 2007 and Friday/ January 26/

2007/ KOVAL/ using the CC-1 Terra Nova Account/
purchased 500 shares of common stock and 25 call
option contracts for Molecular Devices Corporation
("Molecular")/ a company whose securities traded
on the NASDAQ under the sYmbol "MDCC"j

h. On or about Friday/ January 23/ 2009/ POTEROBA

made three calls to KOVALj

i. On or about Monday/ January 26/ 2009/ KOVAL

purchased 14/000 shares of PharmaNet Development
Group/ Inc. ("PharmaNet") / a company whose
securities traded on the NASDAQ under the sYmbol
"PDGI/" using the CC-1 Terra Nova Accountj and

j. Between on or about January 26/ 2009/ and on or

about February 2/ 2009/ KOVAL purchased a total of
approximately 30/000 shares of PharmaNet through
the CC-1 Terra Nova Account.

(Title 18/ United States Code/ Section 371.)

COUNTS TWO THROUGH FOUR

(Securities Fraud)

4. On or about the dates set forth below/ in the

Southern District of New York and elsewhere/ IGOR POTEROBA and
ALEXEI P. KOVAL/ a/k/a "Aleksey Koval/" the defendants/
unlawfully/ willfully and knowingly/ directly and indirectly/ by
the use of the means and instrumentalities of interstate
commerce/ and of the mails/ and of the facilities of national
securities exchanges/ in connection with the purchase and sale of

3
securities, did use and employ manipulative and deceptive devices
and contrivances, in violation of Title 17, Code of Federal
Regulations, Section 240.10b-5, by: (a) employing devices,
schemes and artifices to defraud; (b) making untrue statements of
material fact and omitting to state material facts necessary in
order to make the statements made, in the light of the
circumstances under which they were made, not misleading; and
(c) engaging in acts, practices and courses of business which
operated and would operate as a fraud and deceit upon persons, to
wit, KOVAL and CC-1 both executed the securities transactions
listed below based on material, nonpublic information that
POTEROBA provided to KOVAL:

COUNT DATE SECURITY TRANSACTION

TWO July 13, 2005 Guilford Purchased 9,980
to July 19, Pharmaceuticals, shares of common
2005 Inc. stock and 198 call
options, and sold
450 shares of
common stock
THREE January 22, Molecular Purchased 500
2007 to January Devices shares of common
26, 2007 Corporation stock, 25 call
options, and sold
short 3 call
options
FOUR January 26, PharmaNet Purchased 182,490
2009 to Development shares of common
February 2, Group, Inc. stock
2009

(Title 15, United States Code, Sections 78j (b) & 78ff;
Title 17, Code of Federal Regulations, Section 240.10b-5;
and Title 18, United States Code, Section 2.)

The basis for my knowledge and the foregoing charge is,

in part, as follows:

5. I have been a Special Agent with the FBI for

approximately eight years. I am currently assigned to a squad
responsible for investigating violations of the federal
securities laws and related offenses. I have participated in
numerous investigations of such offenses and I have made and
participated in making arrests of individuals for participating
in such offenses.

4
 6. The information contained in this Complaint is
based upon my personal knowledge, as well as information obtained
during this investigation, directly or indirectly, from other
sources, as indicated below. Because this affidavit is prepared
for limited purposes, I have not set forth each and every fact I
have learned in connection with this investigation. Where
conversations and events are referred to herein, they are related
in substance and in part unless indicated otherwise. Where
figures and calculations are set forth herein, they are
approximate.

Relevant Entities and Individuals

7. Based on information available to the public over

the Internet, documents provided by employers, and law
enforcement databases, I have learned that:

a. At all times relevant to this Complaint, IGOR

POTEROBA, the defendant, was employed as an
investment banker in the Healthcare Group of UBS
Securities LLC ("UBS"), a registered broker-
dealer. Since approximately in or about 2006,
POTEROBA has served as an Executive Director at
UBS;

b. Between in or about July 2009 through at least in

or about October 2009, ALEXEI P. KOVAL, a/k/a
"AlekseyKoval," the defendant, was employed as a
pricing manager. Between in or about May 2006
through at least 2009, KOVAL was employed as a
pricing group supervisor. Between in or about
June 2000 through in or about 2006, KOVAL was
employed at an asset management company;

c. Between in or about July 2007 through in or about

May 2008, CC-1 was employed in Toronto. CC-1 is
believed to be currently residing in Russia;

d. POTEROBA, KOVAL and CC-1 emigrated from Russia and

studied at the University of New Haven: POTEROBA
graduated in 1995; CC-1 graduated in 1997; and
KOVAL attended in 1996. In addition, POTEROBA
graduated from Baruch College, City University of
New York, in 1997, and KOVAL graduated from that
institution in 1998; and

e. Between in or about 1997 and in or about 2000,

POTEROBA, KOVAL and CC-1 used the same or similar

5
 addresses in New York City.

Insider Trading Scheme

General Overview

8. Based on all of the sources of information

referenced herein, including all of the facts and circumstances
described in detail below, I have probable cause to believe the
following:

a. From at least in or about 2005 through at least in

or about February 2009, IGOR POTEROBA and ALEXEI
P. KOVAL, a/k/a "Aleksey Koval," the defendants,
and others known and unknown, conspired to and did
engage in a scheme to defraud by disclosing
material, nonpublic information (the "Inside
Information") and/or executing securities
transactions based on Inside Information
pertaining to at least the following six
companies: Guilford, Molecular, PharmaNet, Via
Cell, Inc. ("Via Cell"), Millennium
Pharmaceuticals, Inc. ("Millennium"), and Indevus
Pharmaceuticals, Inc. ("Indevus") (collectively,
the "Healthcare Companies") i and

b. The means by which POTEROBA and KOVAL effectuated

the fraudulent scheme were as follows: POTEROBA
obtained the Inside Information in the course of
his employment with UBS regarding certain mergers
and acquisitions involving the Healthcare
Companies, and then, in violation of his duties of
trust and confidence, disclosed the Inside
Information to KOVAL, who in turn disclosed the
Inside Information to CC-l. KOVAL and CC-l then
executed securities transactions based on the
Inside Information, earning a total profit of at
least approximately $870,000 from the scheme.

Confidentiality

9. Based on my analysis, research, and review of

documents, my work on prior investigations relating to investment
banks, and my conversations with personnel at UBS, the United
States Securities and Exchange Commission ("SEC"), and other
individuals, I know that investment bankers such as IGOR
POTEROBA, the defendant, have a duty of confidentiality to their
employers and their clients that requires bankers not to disclose

6
Inside Information to others and prohibits them from trading
based on that Inside Information. I also know that UBS
distributes policies and procedures to its employees that
describe the investment bankers' duty of confidentiality and
prohibitions on trading based on that Inside Information. I also
know that UBS employees, including POTEROBA, specifically
acknowledge their review of those policies.

Poteroba's Access to Inside Information at UBS

10. I know from speaking with a senior executive of

UBS's Investment Banking department and from reviewing documents
from UBS that in or about April 2006, IGOR POTEROBA, the
defendant, received new job responsibilities that provided him
with access to inside information about many of UBS's deals
relating to companies in the healthcare field.

Insider Trading in the Securities of Guilford

11. From my review of, among other things, e-mails,

trading records, bank records, phone records, and corporate
documents obtained in the course of this investigation, including
documents from UBS and Guilford, I have learned that:

a. At all times relevant to this Complaint, Guilford

was a bio-pharmaceutical company based in
Baltimore, Maryland, whose securities traded on
the NASDAQ under the trading sYmbol "GLFD";

b. On or about March 16, 2005, representatives of

Guilford discussed with UBS investment bankers the
possibility of Guilford selling itself to a third
party;

c. On or about March 16, 2005, UBS investment

bankers, including IGOR POTEROBA, the defendant,
met to discuss the Guilford transaction;

d. On or about June 10, 2005, MGI Pharma ("MGI")

confidentially advised Guilford that MGI would pay
$3.75 per share to acquire Guilford;

e. On or about July 8, 2005, UBS bankers discussed

with the board of directors of Guilford UBS's due
diligence regarding MGI and its offer;

f. On or about July 12, 2005, at approximately 9:16

p.m., IGOR POTEROBA, the defendant, e-mailed

7
 ALEXEI P. KOVAL, a/k/a "Aleksey Koval," the
defendant, stating:

Call me tomorrow . if I'm on the

line, have me interrupted . . One of
your friends from US called and said
that she would like to get together with
you again. . Let me know how much
time you want to spend with her. . We
should arrange this meeting ASAP .
I recall you had some things put away on
my behalf. . let me know what's left
. otherwise hope to talk
soon .

g. Approximately twenty minutes later, POTEROBA e-

mailed a member of the UBS team working on the
Guilford acquisition: "what's the deal with G?"
The other UBS banker responded that UBS would
learn Guilford's decision following a telephone
conference with the Guilford board of directors on
or about the evening of Sunday, July 17, 2005;

h. On or about July 13, 2005, at approximately 1:20

p.m., POTEROBA e-mailed KOVAL, stating: "can you
pIs give me a call ~ i t[r]ied you a couple of
times and the call is not going through. .";

i. Later that same day, between approximately 2 p.m.

and 4 p.m., records for brokerage accounts held by
CC-l and a co-conspirator not named as a defendant
herein ("CC-2") reflect the following:

i. At approximately 2:00 p.m., CC-l's TD

Ameritrade account (the "CC-l TD Am Account")
purchased 2,400 shares of Guilford common
stock for a total cost of approximately
$5,435; and

ii. At approximately 3:48 p.m., CC-2's TD

Ameritrade account (the "CC-2 TD Am Account")
purchased 3,450 shares of Guilford common
stock and 150 September 2.5 call options in

8
 Guilford. 1

j. On or about July 13 r 2005 r at approximately 8:37

p.m' r POTEROBA e-mailed KOVAL r stating: "Keep me
posted as to how Many frequent flier miles yourve
got this far and how many you plan to get by
Friday [.] will be in Boston tomorrow [.] Plans
for a trip look fine so far[.] Worst case we can
get refund by MondaYr hopefully we do not". As
indicated above r POTEROBA had previously been
advised by a member of the DBS Guilford team that
the Guilford board of directors would reach a
decision on the evening of July 17 r a Sunday.

k. On or about July 14 r 2005 r KOVAL wired

approximately $5,000 from a personal bank account
into a trading account held in the name of "CC-1"
(the "CC-1 Terra Nova Account")2 i

1. On or about July 14 r 2005 r at approximately 6:52

a.m' r KOVAL responded to the email referenced in
subparagraph (11) (j): "As I mentioned r I just got
into this frequent flier program. I got five
thousand of sign-in bonus miles but thinking maybe
if I fly often r I will get additional three to
five K miles . ";

m. At approximately 7:32 a.m' r POTEROBA replied: "On

the frequent flier program top~c you mentioned r I
think you should sign up for another flight r if
you canr since they are providing bonus mileage
soon rr .

n. On·or about July 15 r 2005 r additional trading in

1 A "call option" gives the purchaser the right to buy a

certain number of shares (typically 100 shares) of an underlying
security at a specified pricer until the specified expiration
date of the call option (typically the third Friday of a
specified month). Thus r a "September 2.50 call option" in
Guilford gives the purchaser of the option the right to buy 100
shares of Guilford stock from the seller of the option at a price
of $2.50 per sharer until the third Friday of September.

2 At the time that this trade was made r the account was kept
at RushTrade Securities r which later became Terra Nova Financial r
LLC.

9
 Guilford securities occurred as follows:

i. The CC-l Terra Nova Account purchased

approximately 2,100 shares of Guilford common
stock for a total cost of approximately
$4,983.

ii. The CC-2 TD Am Account purchased an

additional 48 September 2.50 call options in
Guilford and sold 450 shares of Guilford
common stock;

o. On or about July 18, 2005, KOVAL wired another

approximately $4,800 from a personal bank account
associated with KOVAL into the CC-l Terra Nova
Account;

p. On or about the evening of July 18, 2005, the

Guilford board of directors, in a meeting attended
by UBS bankers, approved the MGI tender offer; and

q. On or about July 19, 2005, the CC-1 Terra Nova

Account purchased approximately 2,030 shares of
Guilford common stock at a cost of approximately
$4,780.

12. On or about July 21, 2005, it was publicly

announced that Guilford would be acquired by MGI for
approximately $3.75 per share, and Guilford's share price rose to
approximately $3.40.

13. On or about July 27, 2005, the CC-2 TD Am Account

exercised 70 September 2.50 call options in Guilford.

14. Between on or about July 21 through on or about

July 27, 2005, the CC-l TD Am Account, the CC-2 TD Am Account,
and the CC-l Terra Nova Account sold all of their remaining
Guilford stock and call options for an aggregate profit of
approximately $22,020, which represented a return of
approximately 46 percent.

Insider Trading in the Securities of Molecular

15. From my review of, among other things, e-mails,

trading records, bank records, phone records, and corporate
documents, including documents from UBS ~nd Molecular, I learned
that:

10
a. At all times relevant to this Complaint, Molecular
was a biomedical company based in Sunnyvale,
California, whose securities traded on the NASDAQ
under the sYmbol "MDCC"i

b. On or about November 7, 2006, the Board of

Directors of Molecular authorized UBS to act as
Molecular's exclusive financial advisor in
connection with a potential sale transactioni

c. On or about January 20, 2007, Molecular received

final bids from potential bidders, and Molecular's
board of directors authorized UBS to negotiate
exclusively with the highest bidder, MDS Inc.
("MDS") i

d. On or about January 21, 2007, and January 22,

2007, two calls were placed from the cell phone
number of ALEXEI P. KOVAL, a/k/a "Aleksey Koval,"
the defendant, to the cell phone number of IGOR
POTEROBA, the defendant. Following those calls,
on or about January 22, 2007, the CC-l Terra Nova
Account purchased 300 shares of Molecular common
stock, ten March 25 Molecular call options, five
February 22.50 Molecular call options, and sold
short three April 25 Molecular call optionsi

e. On or about January 22, 2007, POTEROBA and KOVAL

exchanged a series of e-mails. For example:

i. At approximately 4:44 p.m., POTEROBA e-mailed

KOVAL, with the "Subject" line reading: "Let
me know if you've started your wedding
registry at Macys", and the text reading:
"Happy to talk about sales items and
etc ... sale ends soon ... so hurry up." i

ii. At approximately 5:20 p.m., KOVAL responded:

"Yep, I have set it up. Better do it now
when they have sale. [. .J It is always
good idea to know about coupons available. I
try to follow up on the rebates programs
currently in place but often miss many due to
the lack of time. Thanks for pointing it out
to me. Although wedding day is not yet
announced, I hope to get all the important
items ahead of time: I even started buying
small things that usually not important until

11
 you need them. Regards,";

iii. At approximately 5:22 p.m., POTEROBA replied:

"Good points .... sale ends on Friday .... see if
you can get registered for as many items as
possible ... more you get now ... more you
save .... We should start tracking these
events more actively .... Happy to help you
prepare for the big day!";

f. A representative of Macy's has advised me that a

search of Macy's business records was unable to
find any registry for either KOVAL or his wife;

g. Between on or about January 22, 2007 and on or

about Friday, January 26, 2007, the CC-1 Terra
Nova Account purchased in total 500 shares of
Molecular common stock and 25 call option
contracts for Molecular;

h. On or about Monday, January 29, 2007, at

approximately 8:00 a.m., it was publicly announced
that Molecular would be acquired by MDS for $35.50
per share; and

i. Between on or about January 29, 2007, and on or

about February 8, 2007, the CC-1 Terra Nova
Account sold all 500 shares of Molecular common
stock and 25 call option contracts for Molecular;
the CC-1 Terra Nova Account also bought three
April 25 Molecular call options to close its short
position; as a result, the CC-1 Terra Nova Account
reaped a total profit of $26,689, representing a
return of approximately 149 percent.

Insider Trading in the Securities of PharmaNet

16. From my review of, among other things, e-mails,

trading records, bank records, phone records, and corporate
documents, including documents from UBS and PharmaNet, I learned
that:

a. At all times relevant to this Complaint, PharmaNet

was a global drug development services company
based in Princeton, New Jersey, whose securities
traded on the NASDAQ under the symbol "PDGI"i

b. On or about December 18, 2008, PharmaNet announced

12
 that it was pursuing strategic alternatives,
including a potential sale of the company, and
that it had retained UBS as its advisor;

c. From on or about December 22, 2008 through on or

about January 13, 2009, PharmaNet and UBS worked
with a number of interested bidders regarding due
diligence reviews, and on or about January 12 and
13, 2009, UBS sent invitations to each potential
acquirer of PharmaNet requesting they submit a
"best and final" offer;

d. On or about January 13, 2009, at approximately

8:53 p.m., IGOR POTEROBA, the defendant, forwarded
an e-mail to a member of the Heathcare Group
indicating that a UBS client was interested in
learning more about the PharmaNet opportunity, and
at approximately 10:35 p.m., the group head e-
mailed POTEROBA, stating:

Process is in 8th inning any way. No

other buyers (certainly not sponsors)
will be considered.

e. On or about January 21, 2009, at approximately

11:22 a.m., POTEROBA was copied on an e-mail from
another member of the Healthcare Group working on
the PharmaNet transaction, in which that member
stated:

We are receiving final bids on

PharmaNet on Wednesday the 28th with an
important Board meeting the morning of
Friday the 30th.

f. On or about Friday, January 23, 2009, at

approximately 10:20 p.m., 10:23 p.m., and
10:36 p.m., calls were placed from POTEROBA's cell
phone number to the cell phone number of ALEXEI P.
KOVAL, a/k/a "Aleksey Koval," the defendant, which
lasted approximately three minutes, twelve
minutes, and two minutes respectively;

g. On or about the following Monday, January 26,

2009, the CC-1 Terra Nova Account purchased
approximately 14,000 shares of PharmaNet common
stock. The records for the CC-1 Terra Nova
Account indicate that the January 26, 2009

13
 purchase orders were placed via the internet by an
individual using a particular Internet Protocol
number (an "IP Number") for which, based on my
review of internet subscription records, I know
that KOVAL was the subscriber;

h. In total, between on or about January 26, 2009,

and on or about February 2, 2009:

i. The CC-1 Terra Nova Account purchased

approximately 30,000 shares of PharmaNet
common stock;

ii. The CC-1 TD Am Account purchased

approximately 33,200 shares of PharmaNet
common stock;

iii. The CC-2 TD Am Account purchased

approximately 35,190 shares of PharmaNet
common stock;

iv. An RBC brokerage account held in the name of

CC-2 (the "CC-2 RBC Account") purchased
approximately 84,100 shares of PharmaNet
common stock.

i. The records for the CC-1 Terra Nova Account

indicate that all of the purchase orders (with the
exception of 5,000 shares) for PharmaNet common
stock were placed via the internet by an
individual using a particular IP number for which
KOVAL was the subscriber;

j. On or about February 3, 2009, prior to the opening

of trading, it was publicly announced that
PharmaNet would be acquired by affiliates of JLL
Partners, Inc. for $5.00 per share (the "PharmaNet
Announcement") ;

k. Following the PharmaNet Announcement:

i. The CC-1 Terra Nova Account sold all

approximately 30,000 shares of PharmaNet
common stock, for a profit of $97,878,
representing a return of approximately 233
percent;

ii. The CC-1 TD Am Account sold all approximately

14
 33,200 shares of PharmaNet common stock, for
a profit of $107,378, representing a return
of approximately 233 percent;

iii. The CC-2 TD Am Account sold all approximately

35,190 shares of PharmaNet common stock, for
a profit of $115,756, representing a return
of approximately 240 percent; and

iv. The CC-2 RBC Account sold all approximately

84,100 shares of PharmaNet common stock, for
a profit of $289,952, representing a return
of approximately 246 percent.

Insider Trading in the Securities of Via Cell,

Millennium, and Indevus

17. From my review of, among other things, e-mails,

trading records, bank records, phone records, and corporate
documents, I have seen a similar pattern of Inside Information,
communication, and trading involving IGOR POTEROBA and ALEXEI P.
KOVAL, a/k/a "Aleksey Koval," the defendants, and CC-1 with
respect to the purchase of the securities of the following
companies on the following approximate dates:

a. Via Cell, whose securities traded on the NASDAQ

under the symbol "VIAC," between on or about
September 20, 2007 and on or about September 26,
2007;

b. Millennium, whose securities traded on the NASDAQ

under the symbol "MLMN," between on or about March
3, 2008 and on or about April 8, 2008; and

c. Indevus, whose securities traded on the NASDAQ

under the symbol "IDEV," between on or about
December 4, 2008 and January 2, 2009.

Payments from ALEXEI KOVAL to IGOR POTEROBA

18. From my review of, among other things, e-mails,

trading records, bank records, phone records, and corporate
documents, I learned that ALEXEI P. KOVAL, a/k/a "Aleksey Koval,"
the defendant, has made payments to IGOR POTEROBA, the defendant.
I believe KOVAL's payments to POTEROBA are being made in
connection with the insider trading scheme described herein.

19. Between on or about February II, 2008, and on or

15
about February 12, 2008, ALEXEI P. KOVAL, a/k/a "Aleksey Koval,"
and IGOR POTEROBA, the defendants, emailed each other in order to
make plans to meet in New York City on February 12, 2008. At
approximately 4:09 p.m. on February 12, 2008, $5,000 in cash was
withdrawn from a bank account in KOVAL's name at a teller window
in New York City.

20. Between in or about May 2008, through on or about

June 30, 2008, at a time during which ALEXEI P. KOVAL, a/k/a
"Aleksey Koval," the defendant, was living in Pasadena,
California, a total of approximately $22,377 was withdrawn from
the CC-1 Terra Nova Account from various ATMs located in
Pasadena, Los Angeles, and Burbank, California. On or about June
27, 2008, KOVAL wrote a check from his bank account in the amount
of $20,000, made payable to IGOR POTEROBA, the defendant. In the
memo line of the check was written the word "loan".

21. Between on or about July 18, 2008, through on or

about July 31, 2008, at a time during which ALEXEI P. KOVAL,
a/k/a "Aleksey Koval," the defendant, was living in Pasadena,
California, a total of approximately $8,028 was withdrawn from
the CC-1 Terra Nova Account from various ATMs located in
Pasadena, California. On or about July 30, 2008, KOVAL wrote a
check from his bank account in the amount of $8,000, made payable
to IGOR POTEROBA, the defendant, and POTEROBA's wife. In the
memo line of the check were written the words "house down".

22. On or about March 4, 2009, $800 in cash was

withdrawn from a bank account in the name of ALEXEI P. KOVAL,
a/k/a "Aleksey Koval," the defendant, at a location in Pasadena,
California. On or about March 5, 2009, $5,000 in cash was
withdrawn from a bank account in KOVAL's name at a location in
Pasadena, California. On or about March 6, 2009, $5,720 in cash
was deposited into a bank account in the name of IGOR POTEROBA,
the defendant, at a location in Los Angeles, California.

23. On or about May 26, 2009, IGOR POTEROBA, the

defendant, emailed ALEXEI P. KOVAL, a/k/a "Aleksey Koval," the
defendant, and wrote: "Any chance you can burn some new music
for your NY trip[?] 4-5 cds or more. Cool jazz or just plain
disco. Fri lunch is on me - if you can make it". KOVAL
responded: "Sure."

a. On or about June 10, 2009, and on or about June

11, 2009, KOVAL and POTEROBA emailed each other in
order to make plans to meet for lunch in New York
City on June 11, 2009;

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 b. At approximately 12:37 p.m. on or about June 11,
2009, $5,000 in cash was withdrawn from a bank
account in KOVAL's name at a teller window in
Eastchester, New York; and

c. At approximately 5:11 p.m. that same day, POTEROBA

emailed KOVAL, writing: "Good lunch -- love all of
5 cds. Many thanks[.J"

WHEREFORE, deponent prays that arrest warrants be

issued for the above-named defendants and that they be imprisoned
or bailed as the case may be.

SPECIAL AGENT
FEDERAL BUREAU OF INVESTIGATION

Sworn to before me this

22nd day of March, 2010

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