Thursday, January 12, 2012

Fund CEO Brownstein Gets One Year for Insider Scheme


Bloomberg reports that Drew “Bo” Brownstein, the founder and chief executive officer of Denver-based Big 5 Asset Management, was sentenced to one year and a day in prison for trading on inside information about a corporate merger.

U.S. District Judge Robert Patterson in Manhattan today also ordered Brownstein to perform 500 hours of community service and to forfeit $2.44 million. Brownstein also will serve six months house arrest after his prison release and was fined $7,500.
Brownstein, 35, made more than $2.5 million in illegal profits for his hedge fund and for relatives by trading on a tip in advance of Apache Corp. (APA)’s $2.7 billion acquisition of Mariner Energy Inc. (ME) in April 2010, prosecutors said…

Find out more at http://www.bloomberg.com/news/2012-01-11/hedge-fund-ceo-brownstein-gets-one-year-for-insider-scheme.html

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