Judge Finally Approves Schottenfeld Galleon Settlement

Apr 21 2010 | 7:50am ET

It took a little longer than Schottenfeld Group would have liked, but it can finally wash its hands of the Galleon Group insider-trading case.

A federal judge approved the New York-based trading firm’s second settlement with the Securities and Exchange Commission stemming from the Galleon scandal. U.S. District Judge Jed Rakoff earlier this month refused to give his acquiesce to the deal without more information, but yesterday gave the $763,000 settlement his stamp of approval.

“The court finds the disgorgement and penalty calculations to be reasonable,” Rakoff wrote. But the prickly judge, who is set to oversee the civil trial of Galleon founder Raj Rajaratnam next year, couldn’t help taking a shot at the deal, saying of Schottenfeld’s new compliance procedures, “the prophylactic measures appear somewhat superficial.”

Schottenfeld last month settled another SEC case arising from the Galleon case for $1.2 million.


In Depth

Don’t Overlook These 6 Hybrid Cloud Concerns

Sep 14 2017 | 6:27pm ET

Cloud-based technology solutions have made tremendous inroads into the alternative...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Cash: An Asset In Adolescence

Aug 31 2017 | 3:34pm ET

If the investment industry has a rebellious teenager in the house today, that teenager...

 

From the current issue of