Archives for: January 2012, 19
Hedge Fund Owner Admits To Insider Trading
By Securities Law on Jan 19, 2012 | In Legal Actions
Big 5 Asset Management LLC owner Drew “Bo” Brownstein has been sentenced to a year and a day in prison for insider trading. Brownstein admitted to buying shares of Mariner Energy Inc. in April 2010 after learning from a friend that the oil and gas company was going to be acquired by Apache Corp. for $3.9 billion.
Brownstein obtained the insider information from a friend, Drew Peterson, whose father was on the Board of Mariner. Based on the information, Brownstein bought Mariner stock and options for his hedge fund, his personal investment accounts, and his family, without their knowledge.
According to reports Brownstein was required to forfeit $2.4 million in illicit profits, even though he allegedly made more than $5 million. In addition to the prison sentence, the U.S. District Judge for the Federal District Court in Manhattan, also ordered Brownstein to serve six months home confinement, to perform 500 hours of community service, and pay a $7,500 fine on top of the forfeiture of illegal profits.
XML Feeds