Reuters reports that Federal prosecutors are seeking a prison sentence of roughly six to seven-plus years for a former trader who pleaded guilty in April in connection to a sweeping government probe into insider trading.
Craig Drimal told a U.S. federal judge in Manhattan at his plea hearing that he traded in shares of former computer network equipment maker 3Com Corp and Canadian drug company Axcan Pharma Inc based on tips from lawyers at the law firm Ropes & Gray working on merger transactions. Drimal pleaded guilty to securities fraud and conspiracy charges.
In court papers filed on Wednesday, federal prosecutors said that Drimal made around $6.5 million off the trades in 3Com and Axcan. They also said that Drimal lied to the Securities and Exchange Commission when he was questioned about his Axcan trades.
"In sum, Drimal engaged in repeated insider trading over the course of many months," prosecutors said. "He placed large trades so he could reap millions in illegal profits."
Find out more at
http://www.reuters.com/article/2011/08/25/us-trader-usa-sentencing-idUSTRE77O5DK20110825
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