No More Than Six Months For Hedge Fund Insider-Trader, Officials Say

Dec 21 2011 | 10:43am ET

Federal probation officials recommended up to six months in prison for former hedge fund manager Drew Brownstein, who pleaded guilty to insider-trading charges in October.

Brownstein, known as Bo, admitted that he traded on a tip passed along to him by a friend, hedge fund manager Drew Peterson. Peterson learned about the impending $2.7 billion acquisition of Mariner Energy by Apache Corp. from his father, who sat on the Mariner board.

Prosecutors say that Brownstein's Big 5 Asset Management made $2.5 million on the tip.

Under his plea agreement, Brownstein faces as much as almost four years in prison. But in their presentencing report, probation officials wrote, "we do not believe that a lengthy term of imprisonment is required in this case to satisfy the interests of justice."

The probation report was cited by Brownstein's lawyers in a filing last week, and called for six months in prison followed by six months house arrest, or even a sentence with no jail time at all. That's the sentence pushed for by the defense, which recommends community service.

Brownstein's sentencing, originally scheduled for yesterday, was pushed back to Jan. 4.


In Depth

Q&A: Quad Advisors’ Borish Is Looking For Real Traders, Not Index Huggers

Aug 20 2014 | 1:43pm ET

Peter Borish, who served as founding partner and director of research at Tudor Investment...

Lifestyle

Nicky Hilton To Wed James Rothschild

Aug 20 2014 | 5:23am ET

When it comes to husband-material, socialite Nicky Hilton is sticking with finance...

Guest Contributor

Looking Ahead: What’s In Store For Managed Futures?

Aug 22 2014 | 12:52pm ET

The last five years were phenomenal for investors in equity indices. Will the next...

 

Editor's Note

 

Futures Magazine

PREVIEW July/August 2014 Cover

Inside Futures' 500th Issue

The July/August 2014 issue is our largest in years—filled with the best trading strategies and stories from 43 years of being the primary publication for commodity, stock, options and forex traders.

The Alpha Pages

TAP July/August 2014 Cover

Real talk on alternative investments, business & finance

The Alpha Pages Editor's Note