Former Galleon Group LLC trader Franz Tudor, who cooperated with the U.S. government’s investigation of insider trading at hedge funds, was sentenced to three years’ probation for conspiracy and securities fraud.
Tudor, who pleaded guilty in October 2009, helped the government win a guilty plea from former Diamondback Capital portfolio manager Anthony Scolaro and aided in the prosecution of others charged with trading on illegal tips, including former Galleon trader Zvi Goffer, according to the U.S. He was sentenced in Manhattan federal court today.
“Your cooperation is very impressive,” said U.S. District Richard Sullivan, in explaining his decision to give Tudor a non-prison sentence. “It was immediate, it was substantial and it was time-consuming. You did it over a long period of time.”
Prosecutors said that Tudor, while working as a trader at Schottenfeld Group LLC, made $86,000 for his own account and for his firm by trading in shares of Axcan Pharma Inc. based on inside information from Goffer. He began cooperating with federal agents in October 2008, agreeing to record conversations with others suspected of insider trading.
In addition to the term of probation, Sullivan fined Tudor $20,000 and ordered him to forfeit $86,000.
The case is U.S. v. Tudor, 09-CR-1057, U.S. District Court, Southern District of New York (Manhattan).
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