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: Executive Recruiter Talks Hedge Fund Closures, Hiring Trends

Dec 19 2014 | 6:58am ET

This year, hedge funds have been closing at a rate not seen since the financial...

Lifestyle

Cooper-Hohn Won't Contest Divorce Settlement

Dec 18 2014 | 9:51am ET

The ex-wife of hedge fund billionaire Christopher Hohn will not contest a divorce...

Guest Contributor

Alternative Investment Funds Face A Communications Imperative

Dec 19 2014 | 6:10am ET

A handful of the top alternative investment firms on both sides of the Atlantic...

 

Sponsored Content

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

December 2014 Cover

Futures 2014 person of the year

Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.