Lawyers Settle Insider-Trading Suit With SEC

Oct 18 2011 | 8:31am ET

Two lawyers implicated in the Galleon Group insider-trading case have agreed to settle an SEC lawsuit.

Arthur Cutillo, formerly of Ropes & Gray, pled guilty to securities fraud and conspiracy in January and was sentenced to two-and-a-half years in prison. Prosecutors alleged he had shared confidential information about his law firm’s clients with private practice lawyer Jason Goldfarb, who then passed that information along to his old friend and hedge fund trader Zvi Goffer.

Goldfarb, who pled guilty to conspiracy and securities fraud in April, was sentenced to three years in prison in August.

In separate settlements approved Monday by U.S. District Judge Richard Sullivan, Cutillo and Goldfarb each agreed to pay $36,704 in disgorgement and prejudgment interest in the SEC's case, reports the Wall Street Journal. The paper says the settlements will be satisfied by money they have already paid as part of their criminal forfeitures.

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