The first securities trader to be wiretapped by federal authorities in an investigation that resulted in more than two dozen arrests and the trial of a one-time billionaire hedge fund boss pleaded guilty yesterday to insider trading charges. Craig Drimal became the 21st person to plead guilty in the case that was first brought in October 2009 with the arrest of Galleon Group hedge fund founder Raj Rajaratnam. At the time, Southern District U.S. Attorney Preet Bharara called it the biggest hedge fund insider trading bust in history and said it marked the first extensive use of wiretaps in an insider trading case. A jury is deliberating the fate of Mr. Rajaratnam, who the government has said earned more than $63 million in profits from illegal trades. He has pleaded not guilty.
Mr. Drimal, 54, of Weston, Conn., yesterday told Southern District Judge Richard Sullivan that he knew what he was doing was wrong in 2007 when he used secrets provided by corrupt lawyers to earn profits on early trades that capitalized on Hewlett-Packard Co.’s acquisition of 3Com and TPG Capital’s acquisition of Axcan Pharma Inc.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.
For questions call 1-877-256-2472 or contact us at [email protected]
