Tipster Father Gets Probation In Insider-Trading Case

Oct 12 2011 | 6:28am ET

H. Clayton Peterson will do no jail time for passing confidential information to his hedge fund manager son.

A federal judge in New York yesterday sentenced Peterson to two years probation and three months house arrest. Peterson pleaded guilty in August to tipping his son, Drew, off to the impending acquisition of Mariner Energy, on whose board he served. Drew Peterson, who has also pleaded guilty but whose sentencing date has not been scheduled, then tipped off another hedge fund manager, believed to be Denver-based Big 5 Asset Management founder Bo Brownstein.

U.S. District Judge Robert Patterson said that, while he was "concerned that these cases will lead to misunderstanding on the part of the public as to why a sentence here of non-incarceration is justified," he said that Peterson's long business career and service in the Vietnam War weighed in the defendant's favor. But the judge did impose a $400,000 fine, which had not been sought by prosecutors.

"My life and reputation will never be the same," Peterson said at the hearing. "I will live with this stigma for the rest of my life."


In Depth

Israeli Hedge Fund Harnesses Big Data

Jul 28 2014 | 8:10am ET

Apica Green is a multi-million dollar Israeli hedge fund that is based in Tel Aviv...

Lifestyle

David Yarrow On Growing His Hedge Fund And Shooting The Animals And People Of Africa - As A Photographer

Jul 23 2014 | 6:44am ET

While he’s always been a photographer, recent expeditions to Iceland, Ethiopia...

Guest Contributor

Why Is The Shipping Industry Underwater?

Jul 31 2014 | 7:31am ET

Anyone who’s taken a look at the global shipping industry recently probably knows...

 

Sponsored Content

    Northern Trust Helps Hedge Funds Navigate Derivatives Regulations

    Jul 8 2014 | 10:48am ET

    The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…

Publisher's Note