Wednesday, 24 August 2016
Last updated 20 hours ago
Nov 8 2011 | 9:23am ET
A federal judge has gone through with his plan to fine a man for passing confidential corporate information to his hedge fund manager son.
U.S. District Judge Robert Patterson said last month, while sentencing H. Clay Peterson to two years' probation and three months of house arrest, that he might also fine him $400,000. Last week, he decided that his initial inclination was the right one, and ordered the fine.
Peterson pleaded guilty in August to tipping his son Drew off to the impending acquisition of Mariner Energy, on whose board the senior Peterson served. Drew Peterson then tipped off another hedge fund manager, Big 5 Asset Management's Bo Brownstein. Both Drew Peterson and Brownstein have pleaded guilty in the case.
Prosecutors had not sought a fine from Patterson. Peterson's defense team suggested a $126,000 fine instead, citing their client's limited assets and his diminished future earnings capacity.