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

Fundraising for Mid-Sized PE Funds: Should You Use a Registered B/D?

Dec 6 2016 | 7:18pm ET

When does a fund sponsor need to use a registered broker/dealer when raising capital...

Lifestyle

Trump Attends 'Villains and Heroes' Costume Party Dressed As...Himself

Dec 5 2016 | 11:16pm ET

U.S. President-elect Donald Trump attended a "Villains and Heroes" costume party...

Guest Contributor

A Hard Look At Your ‘Soft’ Hedge Fund Marketing Information

Dec 8 2016 | 9:03pm ET

Conventional wisdom holds that due diligence examines quantitative as well as qualitative...

 

From the current issue of

Since the inception of Modern Trader, a core editorial theme has centered on the wisdom and power of crowds. Editorial emphasis has focused on companies and projects engaged in the collection and analysis of information. 

AVAILABLE NOW at BARNES & NOBLE

NEWSTAND LOCATOR