Galleon Mole Gets Probation

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.

In Depth

Financial Industry Blockchain Consortium R3 To Open-Source Platform Code

Oct 20 2016 | 9:03pm ET

Bitcoin's blockchain technology has spawned a flurry of activity among fintech startups...


U.S. Trust's Beard: The Rapid Growth of the Art Lending Industry

Oct 7 2016 | 10:55pm ET

Alternative investment managers have emerged as some of the most significant art...

Guest Contributor

Hedge Fund Marketing – Tips for Your Initial Sales Meeting

Sep 29 2016 | 5:46pm ET

There are two main goals a hedge fund should have for an initial in-person sales...