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

David Yarrow On Growing His Hedge Fund And Shooting The Animals And People Of Africa - As A Photographer

Jul 23 2014 | 6:44am ET

While he’s always been a photographer, recent expeditions to Iceland, Ethiopia...

Lifestyle

Einhorns Busts At WSOP, Finishes In 173rd

Jul 15 2014 | 10:48am ET

Greenlight Capital founder David Einhorn’s World Series of Poker won’t end at...

Guest Contributor

The Truth About Track Record Portability

Jul 24 2014 | 5:55am ET

The number of private funds converting to mutual funds has increased significantly...

 

Sponsored Content

    Northern Trust Helps Hedge Funds Navigate Derivatives Regulations

    Jul 8 2014 | 10:48am ET

    The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…

Publisher's Note