Brownstein Tipster Gets Probation

Apr 13 2012 | 11:09am ET

Hedge fund manager Drew Peterson was sentenced to three years probation on Wednesday for insider-trading.

Peterson pleaded guilty in August to trading on a tip passed to him by his father, a director of Mariner Energy. Peterson, in turn, passed the tip on to Big 5 Asset Management founder Bo Brownstein, who earned $2.5 million for his hedge fund and family members using the tip.

In addition to probation, Peterson was ordered to pay $205,416 in disgorgement and a $10,000 fine, and to serve 200 hours of community service.

Peterson is the final member of the insider circle sentenced. His father was sentenced to two years' probation and three months' house arrest in October, and Brownstein got a year and a day in prison in January.

According to prosecutors, H. Clayton Peterson gave his son advance word that Mariner was to be acquired by Apache Corp. in a $2.7 billion deal.

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