Saturday, 30 July 2016
Last updated 10 hours ago
Jul 1 2011 | 1:08am ET
Arthur Cutillo, a former lawyer who admitted to being part of the insider-trading ring led by former Galleon Group trader Zvi Goffer, was sentenced to two-and-a-half years in prison for his role in the scandal.
Cutillo, who pleaded guilty in January and was disbarred in May, admitted to passing tips gleaned from Bain Capital, a client of Cutillo’s former firm Ropes & Gray, to Goffer, who was convicted of insider-trading earlier this month. He was also ordered to forfeit, with two other Ropes & Gray lawyers who have pleaded guilty, $378,068.
Cutillo’s tips helped Goffer’s ring earn more than $7 million through illicit trading.
“At the time of the crime, you were a respected attorney,” U.S. District Judge Richard Sullivan told Cutillo, who pleaded guilty to conspiracy and securities fraud. “You were earning more than $200,000. Yet it wasn’t enough.”
Cutillo, who repeatedly apologized during the hearing, faced up to three years and one month in prison under the sentencing range recommended by prosecutors. He was ordered to report to prison on Sept. 16.
Later that month, Galleon founder Raj Rajaratnam will find out how much longer he’ll spend in prison than Cutillo. U.S. District Judge Richard Holwell yesterday delayed his sentencing to Sept. 27, after both prosecutors and Rajaratnam agreed to the postponement.
Rajaratnam, convicted of 14 counts of fraud and conspiracy in May, had been scheduled to be sentenced on July 29. He faces up to 19½ years in prison; he is currently under house arrest.