Wednesday, 24 August 2016
Last updated 8 hours ago
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.”