Wednesday, 31 August 2016
Last updated 12 hours ago
Feb 6 2012 | 1:26pm ET
Two men who pleaded guilty in the Galleon Group insider-trading scandal have learned exactly how much their malfeasance will cost them.
U.S. District Judge Richard Sullivan entered judgments against Craig Drimal and David Plate last week, the Securities and Exchange Commission said. Drimal, a former Galleon trader, was ordered to pay almost $7.7 million in disgorgements and prejudgement interest, while Plate, formerly of Schottenfeld Group, will pay $152,443. Both men were also barred from the securities industry.
Drimal and Plate were allegedly members of one of two interlocking insider-trading rings in the case, that headed by former Galleon trader Zvi Goffer. Plate, who cooperated with prosecutors, testified at the trial of Goffer and two other men, helping to win their convictions. As a reward, he received just six months' house arrest and three years' probation, as well as a $289,000 forfeiture.
Drimal was less lucky, receiving five-and-a-half years in prison and an order to forfeit $11 million.