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.