Former Wells Fargo banker indicted in insider-trading scheme

A former Wells Fargo banker and eight others were indicted on Wednesday for their roles in an alleged $11 million insider-trading conspiracy, the U.S. Justice Department announced.

The indictment, which was unsealed on Thursday, said the lead defendant, John Femenia, has been charged with bank fraud, conspiracy to commit insider-trading, conspiracy to commit wire fraud, securities fraud and money-laundering. The Justice Department said he was arrested in New York earlier on Thursday.

Two other defendants facing many of the same charges - Shawn Hegedus and Danielle Laurenti - are currently fugitives, the Justice Department said. The remaining six defendants all agreed to plead guilty to conspiracy to commit insider-trading.

The criminal charges against Femenia come roughly one week after the U.S. Securities and Exchange Commission filed related civil charges.