Lawyer sentenced in insider trading scheme in NYC
Breaking Legal News
A New Jersey lawyer was sentenced Thursday to 2 1/2 years in prison for his role in a hedge fund insider trading scheme as the judge said it was important to send a message of deterrence to Wall Street and to lawyers nationwide.
Arthur Cutillo teamed with another lawyer at a prominent Manhattan law firm to provide tips about mergers and acquisitions of public companies to friends trading stocks professionally.
Cutillo must report to prison in September. U.S. District Judge Richard Sullivan also ordered the 34-year-old Newark, N.J., resident to forfeit $378,608, which represents a portion of the roughly $7 million that authorities estimate was illegally made by traders as a result of inside information from a variety of sources in the case.
Cutillo, who apologized before he was sentenced, was among those arrested in 2009 when U.S. Attorney Preet Bharara unveiled what he said was the biggest hedge fund insider trading case in history.
After the sentence was announced, Bharara said: "With today's sentence, he now joins a growing group of privileged professionals who are paying a high price for insider trading."
Cutillo admitted providing tips to a former college friend in 2007 and 2008 about secrets he learned at the international firm Ropes & Gray. In return, he received $32,500 in cash, part of $100,000 paid to Cutillo and another Ropes & Gray lawyer in return for stock tips.
The prosecution also resulted in the conviction of Raj Rajaratnam, a one-time billionaire who the government said made tens of millions of dollars through inside information provided by longtime friends carrying secrets about public companies.
Sullivan cited Cutillo's challenging family circumstances, including two children with special needs, as reasons that he did not boost the sentence beyond the minimum recommended in a plea deal with prosecutors.
Related listings
-
Justice Ginsburg's future plans closely watched
Breaking Legal News 07/05/2011Democrats and liberals have a nightmare vision of the Supreme Court's future: President Barack Obama is defeated for re-election next year and Justice Ruth Bader Ginsburg, at 78 the oldest justice, soon finds her health will not allow her to continue...
-
14.5 Million Dollar Jury Verdict Awarded Against State Farm Insurance
Breaking Legal News 07/04/2011A six-week trial in Hamilton County Court ended yesterday afternoon with the award of a $14.5 million jury verdict for Joseph Radcliff and his restoration company, CPM Construction of Indiana, against State Farm Insurance. State Farm had filed suit f...
-
BofA Near $8.5B Deal to Settle Big Investors' Claims
Breaking Legal News 06/28/2011Bank of America Corp. is close to finalizing a deal to pay $8.5 billion to settle claims by a group of investors that the bank sold them poor-quality mortgage-backed securities that went sour when the housing market tanked, according to a person fami...
Our Eugene Oregon Bankruptcy Practice
Since 2005, Erin Uhlemann has helped individuals and families facing financial difficulties file for bankruptcy relief. Erin's compassion and understanding of the law have helped hundreds of Oregonians achieve a financial fresh start. She started Willamette Valley Bankruptcy to focus on helping clients with bankruptcy and debt issues in the Lane County Area. Erin understands that choosing a bankruptcy attorney who makes you feel comfortable and confident can be as difficult as deciding whether to file a bankruptcy case. Because she knows that filing bankruptcy is not something that you planned to do or look forward to doing, Erin strives to make the process as easy as possible.
Because most people facing bankruptcy do not have extra money to pay fees, Willamette Valley Bankruptcy offers low upfront fees and will work with you to set up affordable payment plans to pay attorney fees and court filing fees. Consultations are always free so that you can get the answers you need before making any sort of financial commitment. If you have questions about attorney fees and payment plans, you can call or email today to get these questions answered.