Ex-Galleon Trader Faces More Than Seven Years

Aug 25 2011 | 3:10pm ET

Federal prosecutors today asked a judge to send a former Galleon Group trader away for as long as seven years and three months.

In a sentencing memorandum, the U.S. Attorney’s Office wrote that Craig Drimal should be sentenced to between 70 and 87 months in prison for his role in the insider-trading scandal that sank Galleon and that has resulted in 27 convictions or guilty pleas. Drimal is one of the latter, having pleaded guilty to conspiracy and fraud charges in April.

Prosecutors said a long prison term would send a “strong message of deterrence to others in the hedge fund community.” Drimal, who admitted to being part of one of two interlocking insider-trading rings alongside fellow former Galleon trader Zvi Goffer, is to be sentenced on Aug. 31.

Drimal’s attorney, JaneAnne Murray, filed her own sentencing memorandum last week calling for a sentence “substantially below” that called for be sentencing guidelines, including community service or house arrest.

“Drimal has no excuse for his illegal conduct,” prosecutors countered. “He grew up in a stable, loving family with no financial difficulties. He is a college graduate. He has a loving and supportive family. He fully understood that insider trading was illegal and yet repeatedly disregarded the law to make a lot of money.”

In Depth

Financial Industry Blockchain Consortium R3 To Open-Source Platform Code

Oct 20 2016 | 9:03pm ET

Bitcoin's blockchain technology has spawned a flurry of activity among fintech startups...


U.S. Trust's Beard: The Rapid Growth of the Art Lending Industry

Oct 7 2016 | 10:55pm ET

Alternative investment managers have emerged as some of the most significant art...

Guest Contributor

Hedge Fund Marketing – Tips for Your Initial Sales Meeting

Sep 29 2016 | 5:46pm ET

There are two main goals a hedge fund should have for an initial in-person sales...