Former lawyer pleads guilty in Galleon insider trading case

18 January 2011

A lawyer who previously worked for Ropes & Gray has pleaded guilty to charges of leaking information as part of the Galleon Group insider trading case.

Arthur Cutillo pleaded guilty to charges of fraud and conspiracy after allegedly passing on information surrounding mergers and acquisitions his then-firm were working on.

The details were related to firms such as 3Com Corp and Axcan Pharma and could lead to the former lawyer being jailed for up to 37 months.

In court, the defendant, who was quoted by the Wall Street Journal, said: “I would like to sincerely apologize to everyone harmed by my actions. I am truly ashamed by my actions.”

Mr Cutillo is the 15th person to plead guilty in the case so far, which is thought to be the biggest of its kind to ever be investigated.

Raj Rajaratnam, founder of the Galleon Group, is at the centre of the investigation and is expected to face trial on charges of fraud and conspiracy later this year.

He has denied any wrongdoing.

By Jim Ottewill

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