analyst at the center of a 2001 insider bond trading scandal received a nearly three-year prison sentence Friday after pleading guilty to wire and securities fraud.
John Youngdahl previously agreed to pay $240,000 to settle a related
Securities and Exchange Commission
proceeding stemming from his role in a trading scandal that dates to the Treasury's decision to suspend sales of its 30-year bond on Halloween of 2001. Youngdahl got a tip about the suspension from a consultant attending an embargoed Treasury briefing, passed it along to a Goldman traders, and the investment bank used the advantage to make about $4 million in illicit profits, the government contents.
Youngdahl, who told the court he was "deeply sorry" for the crime, was sentenced by U.S. District Judge Denise Cote to two years and nine months in prison -- the lightest term possible under federal guidelines, according to the
Goldman previously agreed to pay $9.3 million to settle SEC charges related to the scheme, while the consultant, Peter Davis, pleaded guilty to fraud and is awaiting sentencing.