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Ex-lawyer sentenced in Galleon case

By Bloomberg News
July 1, 2011

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NEW YORK - Arthur Cutillo, a former Ropes & Gray LLP lawyer who pleaded guilty in the Galleon Group insider trading case, was sentenced to 2 1/2 years in prison.

US District Judge Richard Sullivan in New York imposed the sentence yesterday and ordered Cutillo to forfeit $378,068 along with two other defendants. He must surrender to prison authorities by Sept. 16, the judge ruled.

Cutillo pleaded in January to one count of conspiracy and securities fraud. He admitted disclosing information on transactions the firm was working on to another co-defendant, Jason Goldfarb, in exchange for kickbacks.

Prosecutors said information from Cutillo was passed on to former Galleon trader Zvi Goffer, allowing Goffer and others to earn more than $7 million.

The sentence was at the low end of a range recommended by the government. Assistant US Attorney Andrew Fish said in court papers that the lawyer went “sneaking around’’ his firm searching for documents on coming mergers and acquisitions that provided tips.

Catherine L. Redlich, Cutillo’s lawyer, asked Sullivan to impose no prison time, citing the welfare of Cutillo’s four young children.