Monday, January 24, 2011

Insider Trading: Former Ropes & Gray Lawyer Pleads Guilty

Explored previously, the saga of a former Ropes & Gray attorney accused of insider trading recently entered a new phase. Arthur Cutillo has admitted and plead guilty to charges brought by the SEC. He acknowledged accepting money for sharing confidential, "material, nonpublic information" client information with outside parties.

As reported, this lawyer: "received 'tens of thousands of dollars in cash' for the illegal tips, prosecutors said. Goffer, Goldfarb and several others purchased 884,000 shares of stock with insider information, according to the indictment. Cutillo himself purchased 105,000 shares of 3Com stock..."

When this story and investigation came to light, the firm acknowledged that this: "...represent[s] an extreme breach of their duty of trust to our clients and the firm, as well as gross violations of our policies."

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