Saturday, 28 March 2015
Last updated 19 hours ago
Oct 2 2007 | 12:20pm ET
The Securities and Exchange Commission has made prosecuting insider trading among hedge funds a priority. Now, a federal appeals court is giving that effort some teeth.
The First Circuit Court of Appeals in Boston has ruled that 36 months of probation for a hedge fund manager convicted of insider trading was too lenient, saying that the crime requires doing some time.
Michael Tom of Waltham, Mass., was convicted last year of making $750,000 in ill-gotten gains—for himself and his hedge fund, GTC Growth Fund—trading on insider information about Citizens Financial Group’s acquisition of Charter One Financial. The trial judge sentenced Tom to 36 months’ probation, including six months in a community confinement center, arguing that Tom’s tipster was the truly culpable culprit and was only hit with a years’ probation. He also said that prison time on top of the SEC sanctions Tom faced would be too much punishment for the crime.
The only problem, prosecutors said, was that federal sentencing guidelines called for a minimum of 37 months in prison. The First Circuit concurred.
“We agree with the government that the sentence is unreasonable and that it did not give adequate consideration to the seriousness of the offense, the need for general deterrence for white-collar crimes, and the need for some imprisonment,” the court wrote in its Monday ruling. It remanded the case to U.S. District Court for resentencing.
Mar 9 2015 | 6:35am ET
As more investors look to diversify, many are beginning to use retirement funds to invest in alternative assets such as private equity and real estate. Kelly Rodriques, CEO & President of PENSCO Trust Company, explains how companies can connect with those looking to use their retirement accounts in a different way. Read more…
Mar 20 2015 | 12:45pm ET
StreetWise Partners, a non-profit organization that works with low-income individuals to help them overcome employment barriers, raised over $275,000 at the 2015 Raising the Ante Charity Poker Tournament and Casino Event last Wednesday evening at Capitale. Here are some photos from the event. Read more…