Galleon Conspirators Fined By SEC

Feb 6 2012 | 2:26pm 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.


In Depth

AIMA: Smaller Firms Remain the Lifeblood of the Hedge Fund Industry

Jul 26 2017 | 5:55pm ET

It is a hedge fund industry truism that the largest managers receive the most attention...

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

Rastegar: PE Real Estate Gains Momentum as Uncertainty Rises

Jul 21 2017 | 6:04pm ET

The steady march of equity markets and fundamental shift in the direction of Fed...

 

From the current issue of