This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Lawyer Gets 3 Years In Galleon Probe

NEW YORK ( TheStreet) -- A 33-year-old attorney from New York has been jailed for three years after he was convicted of passing information about merger and acquisition deals to his former college roommate.

Jason Goldfarb was also ordered to pay over a million dollars -- the amount determined by the overseeing judge as the proceeds of his crime -- on top of a $32,500 fine, according to statement released Friday.

According to the U.S. Attorney's Office, two employees of the Boston-based Ropes & Gray legal firm sold information to Goldfarb about companies they were advising, between 2007 and 2008. Goldfarb passed the insider information to former hedge fund manager, Zvi Goffer. Goffer is an ex-Galleon Group employee who was convicted of 14 criminal counts brought against him in June.

Prosecutors claimed Goldfarb conspired with Goffer to pay thousands of dollars to Ropes & Gray-lawyers Arthur Cutillo and Brien Santarlas for information about transactions their firm was working on. Cutillo -- Goldfarb's college roommate -- and Santarlas pleaded guilty.

The leaks included information regarding potential acquisitions of 3Com Corporation and the Axcan Pharma. 3Com was later bought out by Hewlett Packard, while Axcan was acquired by TPG Capital.

Goffer's former boss, Galleon Group co-founder Raj Rajaratnam, was convicted of insider trading in May. Prosecutors are seeking a sentence of more than 24 years when Rajaratnam is sentenced Sept. 27.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
AAPL $130.28 0.47%
FB $81.53 -1.07%
GOOG $565.06 3.30%
TSLA $218.42 -0.08%
YHOO $44.52 1.89%


DOW 18,080.14 +21.45 0.12%
S&P 500 2,117.69 +4.76 0.23%
NASDAQ 5,092.0850 +36.0220 0.71%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs