Goffer Tipster Gets 30 Months; Rajaratnam Sentencing Delayed

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.


In Depth

GSAM's Papagiannis: Liquid Alternatives For The Long Run

Apr 21 2017 | 8:44pm ET

Interest in liquid alternatives cooled a bit last year amid a broad shift in investor...

Lifestyle

Aston Martin Returns To Debt Market As DB11 Drives Turnaround

Mar 31 2017 | 5:21pm ET

James Bond’s preferred carmaker is returning to the public debt markets for the...

Guest Contributor

Debunking Conventional Investment Wisdom (Part II)

Apr 17 2017 | 5:56pm ET

The alternative investment industry is currently replete with buzzwords around data...

 

From the current issue of