The insider trading sentences are just pouring in. The legal community got its first taste of justice last week when Rajat Gupta got two years in prison for his role in the high-profile Goldman Sachs/Galleon Group insider trading case. Then, on Friday, a former Deloitte & Touche partner received his punishment for insider trading with the stocks of his corporate clients.
Thomas Flanagan is headed to prison for 21 months, starting Jan. 15, 2013, and once he gets out, he’ll have 200 hours of community service waiting for him. The court also fined him $100,000.
Flanagan pled guilty to securities fraud in August, admitting that he illegally bought or sold options and shares in his corporate clients, including Sears Holdings Corp., Walgreen Inc., Motorola Inc. and Best Buy Co. He had advance knowledge of the companies’ quarterly reports, and knew of a cost-cutting strategy Motorola was planning.
Read more at Thomson Reuters.
For more InsideCounsel coverage of insider trading, see below: