Report: Father In Father-Son Insider-Trading Case Should Get No Jail

Oct 11 2011 | 11:47am ET

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.

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...