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

U.S. Treasury Moves on Reinsurance Loophole

Apr 24 2015 | 5:11pm ET

The U.S. Treasury Department has released proposed rules aimed at limiting the ability...

Lifestyle

Puerto Rico Woos The Rich But So Far Gains Little

Apr 17 2015 | 2:45am ET

Hedge fund manager Rob Rill grins. He has just had word that U.S. financial regulators...

Guest Contributor

Opportunities Ahead: Asian Fixed Income and Currency Markets

Apr 24 2015 | 6:18am ET

For hedge funds focusing on Asia, the policy uncertainty, unclear interest rate...

 

Editor's Note