Big 5’s Brownstein Gets Year In Prison

Jan 12 2012 | 6:11am ET

Hedge fund manager Drew Brownstein was sentenced to one year in prison yesterday for insider-trading.

Brownstein pleaded guilty in October to securities fraud, admitting that he traded on a tip from his father, a member of the board of directors at Mariner Energy. H. Clayton Peterson told his son that Mariner was to be acquired by Apache Corp. in a $2.7 billion deal; according to prosecutors, Brownstein made $2.5 million for his Denver-based Big 5 Asset Management and family members using the information.

Brownstein was also ordered to forfeit $2.44 million, serve six months house arrest and 500 hours of community service, and to pay a $7,500 fine.

“Indications are people are complaining,” U.S. District Judge Robert Patterson told Brownstein. “They’re complaining about the money made on Wall Street. Greed is what they’re concerned about and most of us would agree with them.”

Brownstein had faced almost four years in prison, although probation officials recommended a sentence of just six months. Prosecutors argued for a sentence “far more substantial.”

“I want to tell you how sorry I am for having made a terrible mistake,” Brownstein said at the Manhattan hearing. “I take full responsibility for my actions and I will have to live with this for the rest of my life.”


In Depth

Q&A: Decathlon Capital On Revenue-Based Alternative Lending

Oct 30 2017 | 3:49pm ET

The explosion in private credit activity since the end of the financial crisis is...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Saxby: Not All EBITDA Is Created Equal

Nov 30 2017 | 8:02pm ET

Record levels of dry powder are driving competition among private equity firms to...