PREET BHARARA, the United States Attorney for the Southern District of New York, announced that JASON GOLDFARB, an attorney, pled guilty today to conspiracy and securities fraud charges arising from a scheme in which GOLDFARB gave material, non-public information misappropriated from the law firm of Ropes & Gray to ZVI GOFFER, who allegedly traded on that information. GOLDFARB received cash payments for his role in the insider trading scheme. He pled guilty before U.S. District Judge RICHARD J. SULLIVAN.
According to the indictment, a complaint previously filed in this case, and statements made during today’s guilty plea proceeding:
In 2007 and 2008, two Ropes & Gray attorneys, ARTHUR CUTILLO and BRIEN SANTARLAS, provided JASON GOLDFARB with material, non-public information (“Inside Information”) about several mergers and acquisitions of public companies for which Ropes & Gray served as legal advisor. GOLDFARB, in turn, delivered the Inside Information to ZVI GOFFER. The Inside Information included information regarding the potential acquisition of 3Com Corporation (“3Com”) and the potential acquisition of Axcan Pharma, Inc. (“Axcan”). GOFFER is alleged to have provided cash payments to GOLDFARB, CUTILLO, and SANTARLAS in exchange for the Inside Information.
GOLDFARB, 32, pled guilty to one count of conspiracy and one count of securities fraud. The conspiracy count carries a maximum sentence of five years in prison, and the securities fraud count carries a maximum sentence of 20 years in prison. He faces a maximum fine of $250,000, or twice the gross gain or loss from the offense on the conspiracy count and a maximum fine of $5 million on the securities fraud count.
GOLDFARB is scheduled to be sentenced by Judge SULLIVAN on August 19, 2011, at 10:00 a.m.
CUTILLO and SANTARLAS both previously pled guilty to conspiracy and securities fraud charges. Charges against GOFFER remain pending and are merely accusations. He is presumed innocent unless and until proven guilty.
Monday, April 25, 2011
Manhattan U.S. Attorney Announces Guilty Plea of Jason Goldfarb to Insider Trading Charges
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