Friday, 24 February 2017
Last updated 36 min ago
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.