A former Ernst & Young partner in New York has been found guilty of insider trading after he passed information about proposed buyouts on to a friend.

James Gansman worked as a lawyer in E&Y’s transaction division and advised companies on human resources issues arising during mergers and acquisitions, The Times reported.

Between May 2006 and July 2007, Gansman passed information about seven forthcoming takeovers to his friend Donna Murdoch who it to trade shares, making a profit of nearly $400,000.

Murdoch was found guilty of securities fraud on December 15. She then testified against Gansman, who was found guilty of six counts of securities fraud. He faces a maximum prison sentence of 20 years and a fine of up to £3.3 million. He is due to be sentenced on October 1.

Gansman resigned from EY in October 2007.