Wednesday, December 21, 2011

Feds recommend up to 6 months in the slammer for insider trader

It's a mere slap on the wrist. According to the Denver Post Drew "Bo" Brownstein should receive a sentence of up to six months in jail, home confinement and community service for illegal insider trading, federal probation officials say.
Federal probation officials recommended a sentence of up to six months in jail and other penalties for former Denver hedge- fund manager Drew "Bo" Brownstein, who pleaded guilty to illegal insider trading, his attorneys said in a court filing.

Brownstein's sentencing in federal district court in New York was scheduled for Tuesday but was pushed back to Jan. 4.

"While the offense is certainly serious and warrants punishment, overall, we do not believe that a lengthy term of imprisonment is required in this case to satisfy the interests of justice," probation officials wrote in a presentencing report, Brownstein attorneys Gary Naftalis and David Frankel said in a sentencing memorandum filed last week.

The presentencing report noted that Brownstein expressed regret, has agreed to return his illegally gained profits and is supported by family, friends and community members, "all of whom believe justice may be better served by a non-imprisonment sentence."

The maximum jail sentence for securities fraud is 20 years....


Read more: http://www.denverpost.com/business/ci_19589592#ixzz1hBcI3cFS

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