Ex-Foley & Lardner Partner Hit With 27-Month Sentence in Insider Trading Case
Walter "Chet" Little, formerly a banking and real estate partner at two large law firms, was sentenced Thursday after entering a guilty plea in November.
February 23, 2018 at 02:28 PM
4 minute read
Walter “Chet” Little.
A New York federal judge on Thursday sentenced Walter “Chet” Little, a former Foley & Lardner and Bradley Arant Boult Cummings lawyer, to more than two years in prison after he pleaded guilty to a conspiracy charge last year in an insider trading case.
Little's sentence, handed down by Manhattan U.S. District Judge Katherine Polk Failla, calls for the former Big Law real estate and banking partner to serve 27 months in prison and forfeit just shy of $453,000, according to the U.S. Attorney's Office for the Southern District of New York, which prosecuted the case. The sentencing followed Little's guilty plea in November to a charge of conspiracy to commit securities fraud.
Little, 44, was arrested and charged in May—less than a year after he joined Bradley Arant's Tampa, Florida, office from Foley & Lardner, where he had worked for more than a decade as an associate and partner. Prosecutors accused him of using his access to confidential information while at Foley & Lardner to help himself and a business associate, co-defendant Andrew Berke, collectively earn about $1 million in illicit profits through options and stock trades.
Prosecutors said Little accessed nonpublic information related to expected mergers and earnings releases for companies that Foley & Lardner represented, including Oshkosh Corp., Whiting Petroleum Corp. and Harley-Davidson Inc., although he did not work directly for any of those clients. Little was accused of trading based on that confidential information, earning hundreds of thousands of dollars as a result, and of passing the information to Berke, who also made trades based on that information. Berke has also entered a guilty plea in the criminal case and is scheduled for sentencing in April, according to the U.S. Attorney's Office.
“Walter Little, a law firm partner with access to sensitive nonpublic client information, selfishly chose to exploit it for personal gain rather than safeguard it,” U.S. Attorney Geoffrey H. Berman of the Southern District of New York said in a statement on Thursday following Little's sentencing hearing. “Today's sentence underscores the seriousness of insider trading, as Little will now serve serious time in prison.”
Under a plea agreement struck with federal prosecutors in October, Little had faced a maximum sentence of up to five years in prison. After a change-of-plea hearing in November, however, Little's defense lawyer, Todd Foster of Tampa, said he planned to provide a “great deal” of evidence that he hoped would mitigate Little's sentence.
Earlier this month, Foster filed a sentencing memorandum on Little's behalf, arguing that he deserved a lesser sentence for several reasons, including that his career as a lawyer could end in permanent disbarment in light of a felony conviction and that Little faces a “crippling tax burden” of more than $300,000 in connection with his termination from Foley & Lardner.
Foster also wrote that Little was actively participating in a Florida bar-sponsored drug and alcohol rehabilitation program and that, during the period of the insider trading conspiracy, “Little suffered from undiagnosed bipolar disorder, a mental condition which, left unchecked, resulted in distorted judgment and reasoning.”
In addition to the sentencing memo, Little and his lawyer submitted 25 pages of letters from family, friends, law school classmates and clients, all pleading for leniency.
On Friday, Foster said the judge “saw fit to grant a downward variance” from the maximum sentence Little could have faced.
“Chet Little took responsibility for his actions and we presented what we felt was substantial mitigation, including mental health and family circumstances evidence to the court,” said Foster. “Mr. Little now begins the process of serving his time and rebuilding his life.”
Following Little's arrest, Foley & Lardner said it had let him go after an internal investigation showed that he violated firm policies and that the firm cooperated with authorities. Bradley Arant, meanwhile, took swift action to dismiss Little after it learned of charges against him.
There was no indication that either Foley & Lardner or the federal government notified Bradley Arant about the investigation before Little switched firms in the summer of 2016. Discussing those circumstances in May, legal ethics experts said Foley & Lardner didn't have an obligation to tip off Bradley Arant.
Little and Berke continue to face a parallel civil suit brought by the U.S. Securities and Exchange Commission. That case is pending in Manhattan federal court, according to court records.
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
NOT FOR REPRINT
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View AllJay Clayton, Ex-SEC Chief and Sullivan & Cromwell Lawyer, Eyed For Manhattan US Attorney's Office
Legal Speak's 'Sidebar with Saul' Part II: GOP Pols Push Misinformation, Cohen Keeps It Together
1 minute readLegal Speak: Aaron Sorkin This Is Not - Trump Trial with Emily Saul (Part 1)
2 minute readPillsbury Partner Representing Sean 'Diddy' Combs Following Homeland Security Raid
Trending Stories
- 1Gibson Dunn Sued By Crypto Client After Lateral Hire Causes Conflict of Interest
- 2Trump's Solicitor General Expected to 'Flip' Prelogar's Positions at Supreme Court
- 3Pharmacy Lawyers See Promise in NY Regulator's Curbs on PBM Industry
- 4Outgoing USPTO Director Kathi Vidal: ‘We All Want the Country to Be in a Better Place’
- 5Supreme Court Will Review Constitutionality Of FCC's Universal Service Fund
Who Got The Work
Michael G. Bongiorno, Andrew Scott Dulberg and Elizabeth E. Driscoll from Wilmer Cutler Pickering Hale and Dorr have stepped in to represent Symbotic Inc., an A.I.-enabled technology platform that focuses on increasing supply chain efficiency, and other defendants in a pending shareholder derivative lawsuit. The case, filed Oct. 2 in Massachusetts District Court by the Brown Law Firm on behalf of Stephen Austen, accuses certain officers and directors of misleading investors in regard to Symbotic's potential for margin growth by failing to disclose that the company was not equipped to timely deploy its systems or manage expenses through project delays. The case, assigned to U.S. District Judge Nathaniel M. Gorton, is 1:24-cv-12522, Austen v. Cohen et al.
Who Got The Work
Edmund Polubinski and Marie Killmond of Davis Polk & Wardwell have entered appearances for data platform software development company MongoDB and other defendants in a pending shareholder derivative lawsuit. The action, filed Oct. 7 in New York Southern District Court by the Brown Law Firm, accuses the company's directors and/or officers of falsely expressing confidence in the company’s restructuring of its sales incentive plan and downplaying the severity of decreases in its upfront commitments. The case is 1:24-cv-07594, Roy v. Ittycheria et al.
Who Got The Work
Amy O. Bruchs and Kurt F. Ellison of Michael Best & Friedrich have entered appearances for Epic Systems Corp. in a pending employment discrimination lawsuit. The suit was filed Sept. 7 in Wisconsin Western District Court by Levine Eisberner LLC and Siri & Glimstad on behalf of a project manager who claims that he was wrongfully terminated after applying for a religious exemption to the defendant's COVID-19 vaccine mandate. The case, assigned to U.S. Magistrate Judge Anita Marie Boor, is 3:24-cv-00630, Secker, Nathan v. Epic Systems Corporation.
Who Got The Work
David X. Sullivan, Thomas J. Finn and Gregory A. Hall from McCarter & English have entered appearances for Sunrun Installation Services in a pending civil rights lawsuit. The complaint was filed Sept. 4 in Connecticut District Court by attorney Robert M. Berke on behalf of former employee George Edward Steins, who was arrested and charged with employing an unregistered home improvement salesperson. The complaint alleges that had Sunrun informed the Connecticut Department of Consumer Protection that the plaintiff's employment had ended in 2017 and that he no longer held Sunrun's home improvement contractor license, he would not have been hit with charges, which were dismissed in May 2024. The case, assigned to U.S. District Judge Jeffrey A. Meyer, is 3:24-cv-01423, Steins v. Sunrun, Inc. et al.
Who Got The Work
Greenberg Traurig shareholder Joshua L. Raskin has entered an appearance for boohoo.com UK Ltd. in a pending patent infringement lawsuit. The suit, filed Sept. 3 in Texas Eastern District Court by Rozier Hardt McDonough on behalf of Alto Dynamics, asserts five patents related to an online shopping platform. The case, assigned to U.S. District Judge Rodney Gilstrap, is 2:24-cv-00719, Alto Dynamics, LLC v. boohoo.com UK Limited.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250