Since the inception of Modern Trader, a core editorial theme has centered on the wisdom and power of crowds. Editorial emphasis has focused on companies and projects engaged in the collection and analysis of information.
Friday, 9 December 2016
Last updated 7 hours ago
Aug 22 2011 | 12:58pm ET
A lawyer serving as a broker in confidential information to convicted insider-trader Zvi Goffer was sentenced Friday to three years in prison.
Jason Goldfarb pleaded guilty in April to conspiring with Goffer, a former trader at Galleon Group and Schottenfeld Group and the founder of hedge fund Incremental Capital, to buy tips from two lawyers at Ropes & Gray. One of those lawyers—both of whom pleaded guilty in the case—Arthur Cutillo, said he received $32,500 from Goldfarb for information, money he believed Goldfarb got from Goffer.
"I set up a dinner with Zvi Goffer, who explained to Mr. Cutillo that he was looking for any type of information he might come across that might benefit him and he might make some money," Goldfarb said in April. A month later, testifying against Goffer and his two co-defendants, Brien Santarlas, the other lawyer involved in the scheme, said that he and Cutillo passed Goldfarb information about acquisitions Ropes & Gray was working on.
Goldfarb's sentence is just shy of the 37 to 46 months suggested by federal sentencing guidelines, and is only slightly longer than the 30 months Cutillo received.
For three hours, U.S. District Judge Richard Sullivan heard from Goldfarb's clients, co-workers, friends and family, all urging leniency. Many noted that Goldfarb, who has been disbarred, participated in the scam to help his parents—his father's business was failing and his mother had been diagnosed with cancer. Goldfarb's lawyer said that all of the money he received went to his parents.
Prosecutor Richard Tarlowe took issue with that portrayal, calling it "very hard to reconcile from the picture that emerges from the evidence, most specifically, the wiretaps, the phone calls."