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.