New York A 41-year-old Indian citizen has been arrested on charges of insider trading and making thousands of dollars using confidential information of a private equity firm’s acquisition of a technology company.

Mr. Avaneesh Krishnamoorthy, who lives in New Jersey, served as a vice president and risk management specialist for a Manhattan-based investment bank from 2015 till this month. He is charged with one count of securities fraud, which carries a maximum sentence of 20 years in prison and a maximum fine of $5 million.

Acting Manhattan US Attorney Joon Kim said Mr. Krishnamoorthy made approximately $48,000 in illicit profits through the insider trading scheme.

The Securities and Exchange Commission filed a parallel civil complaint alleging that the accused learned that Golden Gate Capital planned to acquire publicly traded advertising technology company Neustar Inc.

He then began trading in Neustar securities. The trading took place in two brokerage accounts that Mr. Krishnamoorthy allegedly kept hidden from his employer, which had been approached by Golden Gate Capital to finance the transaction.

Mr. Krishnamoorthy was presented in Manhattan federal court before US Magistrate Judge Kevin Nathaniel Fox yesterday.

The insider trading case is among the first brought by Mr. Kim, who succeeded Preet Bharara, Manhattan’s top federal prosecutor after he was fired by the Trump administration.