{"id":5139,"date":"2011-01-25T00:00:00","date_gmt":"2011-01-25T06:00:00","guid":{"rendered":"https:\/\/institutionalinvestorsecuritiesblog.blawgcloud.com\/2011\/01\/44_of_insider_traders_convicte"},"modified":"2020-09-17T09:00:39","modified_gmt":"2020-09-17T14:00:39","slug":"44-of-insider-traders-convicte","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/44-of-insider-traders-convicte\/","title":{"rendered":"44% of Insider Traders Convicted of Insider Trading in New York Manage to Get Out of Jail Before Even Serving Time"},"content":{"rendered":"<h2>Nearly Half of Those Committed Of Insider Trading Crimes Avoid Prison<\/h2>\n<p>According to <strong>Bloomberg News<\/strong>, nearly half of the defendants sentenced for insider trading crimes Manhattan federal court since 2003 have managed to avoid prison because they cooperated with prosecutors. That\u2019s 19 out of the 43 people. The average defendant received a prison sentence of 18.4 months.<\/p>\n<p>How are these insider traders managing to get such light sentences or getting away with not serving any time at all? Cooperating with prosecutors and pleading guilty to <a href=\"https:\/\/www.investorlawyers.com\/index\">insider trading<\/a> helps. So does suffering from an illness or having to take care of a sick family member.<\/p>\n<p>US sentencing guidelines factor in how much of a profit an offender actually made, as well as the defendant\u2019s scope of involvement in the crime. The US Sentencing Commission reports that in 7,617 fraud cases in fiscal 2009, the average sentence was 21.8 months. 94.9% of the cases ended with guilty pleas. 5.1% went to trial.<\/p>\n<h2>Sentences for Insider Traders Include Probation or Home Confinement<\/h2>\n<p><strong>Bloomberg <\/strong>reports that per a review of government statements put out by the Manhattan U.S. Attorney\u2019s Office since 2003, sentences for many of the insider traders convicted included home confinement or probation. Payment of restitution and fines also were usually required.<\/p>\n<p>Insider traders who pleaded guilty generally received sentences of about 14.6 months\u2014although if the case received a lot of media attention, lengthier prison sentences can result.<\/p>\n<p>Of the four insider trading cases since 2003 that did go before a Manhattan jury, one case was thrown out right before sentencing. That said, persons convicted of insider trading generally are sentenced to longer prison terms (on average, the three defendants convicted in court of insider trading received 68 months sentences) than the ones received by those who pleaded guilty.<\/p>\n<p>For example, Ex-Credit Suisse Group AG banker Hafiz Muhammad Zubair Naseem was sentenced to 10 years behind bars after a jury convicted him of leading a $7.8 million insider trading scam. Last December, ex-Jefferies Paragon Fund manager Joseph Contorinis was ordered to serve six years in prison for making over $7 million through insider trading.<\/p>\n<p><strong>Related Web Resources: <\/strong><br \/>\n<a href=\"https:\/\/www.bloomberg.com\/news\/2011-01-20\/insider-trading-defendants-avoid-prison-in-44-of-new-york-cases\">Insider Defendants Avoid Prison in 44% of N.Y. Cases<\/a>, Bloomberg, January 19, 2011<\/p>\n<p><a href=\"https:\/\/www.sec.gov\/answers\/insider.htm\">Insider Trading<\/a>, SEC<\/p>\n<p><a href=\"https:\/\/www.ussc.gov\/\">US Sentencing Commission<\/a><\/p>\n<p> <a href=\"https:\/\/www.investorlawyers.com\/blog\/44-of-insider-traders-convicte\/#more-5139\" class=\"more-link\">Continue Reading \u203a<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Nearly Half of Those Committed Of Insider Trading Crimes Avoid Prison According to Bloomberg News, nearly half of the defendants sentenced for insider trading crimes Manhattan federal court since 2003 have managed to avoid prison because they cooperated with prosecutors. That\u2019s 19 out of the 43 people. The average defendant received a prison sentence of [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3811],"tags":[],"class_list":["post-5139","post","type-post","status-publish","format-standard","hentry","category-insider-trading"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>44% of Those Convicted of Insider Trading Manage to Get Out of Jail | Investor Lawyers<\/title>\n<meta name=\"description\" content=\"Nearly Half of Those Committed Of Insider Trading Crimes Avoid Prison According to Bloomberg News, nearly half of the defendants sentenced for insider &#8212; January 25, 2011\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.investorlawyers.com\/blog\/44-of-insider-traders-convicte\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"44% of Those Convicted of Insider Trading Manage to Get Out of Jail | Investor Lawyers\" \/>\n<meta name=\"twitter:description\" content=\"Nearly Half of Those Committed Of Insider Trading Crimes Avoid Prison According to Bloomberg News, nearly half of the defendants sentenced for insider &#8212; January 25, 2011\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Shepherd Smith Edwards &amp; Kantas, LLP\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"44% of Those Convicted of Insider Trading Manage to Get Out of Jail | Investor Lawyers","description":"Nearly Half of Those Committed Of Insider Trading Crimes Avoid Prison According to Bloomberg News, nearly half of the defendants sentenced for insider &#8212; January 25, 2011","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.investorlawyers.com\/blog\/44-of-insider-traders-convicte\/","twitter_card":"summary_large_image","twitter_title":"44% of Those Convicted of Insider Trading Manage to Get Out of Jail | Investor Lawyers","twitter_description":"Nearly Half of Those Committed Of Insider Trading Crimes Avoid Prison According to Bloomberg News, nearly half of the defendants sentenced for insider &#8212; January 25, 2011","twitter_misc":{"Written by":"Shepherd Smith Edwards &amp; Kantas, LLP","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.investorlawyers.com\/blog\/44-of-insider-traders-convicte\/#article","isPartOf":{"@id":"https:\/\/www.investorlawyers.com\/blog\/44-of-insider-traders-convicte\/"},"author":{"name":"Shepherd Smith Edwards &amp; Kantas, LLP","@id":"https:\/\/www.investorlawyers.com\/blog\/#\/schema\/person\/e0240e0754684b69f7d6a7de1b9f1431"},"headline":"44% of Insider Traders Convicted of Insider Trading in New York Manage to Get Out of Jail Before Even Serving Time","datePublished":"2011-01-25T06:00:00+00:00","dateModified":"2020-09-17T14:00:39+00:00","mainEntityOfPage":{"@id":"https:\/\/www.investorlawyers.com\/blog\/44-of-insider-traders-convicte\/"},"wordCount":407,"articleSection":["Insider Trading"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/www.investorlawyers.com\/blog\/44-of-insider-traders-convicte\/","url":"https:\/\/www.investorlawyers.com\/blog\/44-of-insider-traders-convicte\/","name":"44% of Those Convicted of Insider Trading Manage to Get Out of Jail | Investor Lawyers","isPartOf":{"@id":"https:\/\/www.investorlawyers.com\/blog\/#website"},"datePublished":"2011-01-25T06:00:00+00:00","dateModified":"2020-09-17T14:00:39+00:00","author":{"@id":"https:\/\/www.investorlawyers.com\/blog\/#\/schema\/person\/e0240e0754684b69f7d6a7de1b9f1431"},"description":"Nearly Half of Those Committed Of Insider Trading Crimes Avoid Prison According to Bloomberg News, nearly half of the defendants sentenced for insider &#8212; 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