Schottenfeld Group pays $1.2m to settle insider trading case

31 March 2010

Schottenfeld Group has paid $1.2 million to settle a case with the Securities and Exchange Commission (SEC) which alleged the firm was involved with insider trading.

Last November, the SEC stated that the firm was implicated in the Galleon Group case.

It was claimed that lawyer Arthur Cutillo passed on confidential information to Schottenfeld employee Zvi Goffer, who is alleged to be one of the key figures in the $20 million scam.

Schottenfeld will pay $742,400 in disgorgement, a $371,200 fine and $96,200 in interest to settle the case against it, while also agreeing to assist the SEC with the rest of its investigation.

Gautham Shankar and David Plate are two other Schottenfeld staff members who have also been charged in relation to the ongoing Galleon case.

The three employees and Mr Cutillo have all pleaded not guilty.

Last month, Rajiv Goel, a former managing director at Intel's treasury group, became the ninth person to plead guilty in relation to their role in the Galleon insider trading ring, reported Bloomberg.

By Asim Shah

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