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

Humble in Hofstra...One Debate an Election Can Make

Sep 26 2016 | 10:20am ET

Tonight's U.S. Presidential debate, infamously coined the “Humbling in Hofstra...

Lifestyle

Vortic: Reimagining the Custom Wristwatch

Sep 27 2016 | 7:24pm ET

American watch manufacturer Vortic, which started out restoring antique pocket watch...

Guest Contributor

Malik: The Ever-Changing Middle Market and The Entering Class of 2016

Sep 2 2016 | 5:01pm ET

Deal sourcing and origination is only going to get more competitive given current...