A father should spend no time in jail for passing confidential tips on to his hedge fund manager son, a probation officer recommended.
H. Clayton Peterson, who is to be sentenced today in New York federal court, should receive two years in prison and three months house arrest, the probation officer wrote, according to a court filing by his lawyers.
Peterson pleaded guilty in August to tipping his son, Drew, who worked at Private Capital Management, about the impending acquisition of Mariner Energy, on whose board he sat. Drew, in turn, tipped off a Denver hedge fund manager, believed to by Big 5 Asset Management founder Bo Brownstein.
Drew Peterson has also pleaded guilty in the case, while Brownstein is reportedly in talks with prosecutors.
Clayton Peterson's plea deal calls for a sentence of up to 18 months in prison, half of which could be served as house arrest.