Thursday, 31 July 2014
Last updated 4 hours ago
Jan 23 2012 | 1:33pm ET
Former Galleon Group trader David Slaine admitted that he made more than $3 million in illegal profits trading on confidential information. But he won't spend a day in jail.
Slaine received three years' probation on Friday. Prosecutors in the Galleon case pushed for leniency, crediting Slaine's cooperation—including his agreement to wear a wire—with helping doom Raj Rajaratnam, other members of the Galleon Group insider-trading ring and those implicated in the expert-network insider trading case. U.S. Attorney Preet Bharara called Slaine's assistance "nothing short of extraordinary."
U.S. District Judge Richard Sullivan agreed.
"Mr. Slaine, you have your life back," he said. "I think you've earned it, by virture of the work you've done over the last five years."
Slaine was also ordered to perform 300 hours of community service and pay a $500,000 fine. He's already forfeited $836,000 in a parallel Securities and Exchange Commission civil case.
Slaine pleaded guilty to securities fraud and conspiracy in December 2009. He admitted to earning some $3 million for Chelsey Capital, a hedge fund, in 2002, as well as more than $500,000 for himself. He did not testify at Rajaratnam's trial, but did testify in the trial of three other members of the Galleon circle, led by former Galleon trader Zvi Goffer.
Jul 8 2014 | 10:48am ET
The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…