Craig Drimal just plead guilty to insider trading.
In the very same room that Raj has been on trial for the past 7 weeks, Drimal told the courtroom, “I deeply regret my actions that have caused such great pain to my family and friends.”
Drimal was charged with insider trading (in 3com stock) along with 4 others last year. More indictments were added to their charges on April 8.
Arthur Cutillo, a former M&A lawyer at Ropes and grey, plead guilty to giving Drimal and the others insider tips based on information he stole from the firm.
Drimal’s charges are otherwise unrelated to the ongoing trial of Raj Rajaratnam, which could finish today.
However Drimal worked in the Galleon offices and he’s the 21st person to plead guilty in Galleon-related charges. So this just makes us wonder, again, why Raj plead not guilty.
From the AP newswire:
A former employee of a New York hedge fund at the centre of a massive insider trading prosecution pleaded guilty Tuesday to conspiracy and securities fraud.
Craig Drimal became the 21st person to plead guilty in the case.Drimal was arrested in the fall of 2009. It was just weeks after the arrest of his one-time boss, Galleon Group founder Raj Rajaratnam.
At a pretrial hearing last week, the judge said he was deeply troubled by an “apparently voyeuristic intrusion” by investigators who eavesdropped on phone calls between the Drimal and his wife. U.S. District Judge Richard Sullivan rejected a defence request to toss out evidence gathered from more than a thousand intercepted calls against the former Galleon Group trader on the grounds that the government abused the permission it received to eavesdrop on Drimal’s calls. He said the wiretap was professionally conducted and generally well-executed overall.Sentencing for the 54-year-old Drimal is set for Sept. 9.
“I deeply regret my actions that have caused such great pain to my family and friends” Drimal said as he plead.