Tuesday, 7 July 2015
Last updated 4 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.
May 27 2015 | 2:15pm ET
Support Hedge Funds Care, also known as Help For Children (HFC), by participating in this year's raffle. All proceeds go to support HFC's mission of preventing and treating child abuse. Read more…