Bo K. Brownstein, the head of Big 5 Asset Management, is expected to plead guilty on insider trading charges today. Brownstein will enter his plea today at the Federal District Court in Manhattan.
Bo Brownstein Allegedly Made Over $5 Million on an Insider Tip
Bo Brownstein’s insider trading charges stem from an incident in early 2010. H. Clayton Peterson was on the board at Mariner Energy when he learned that Mariner would be taken over by the Apache Corporation in April 2010 as part of a $2.7 billion deal. Peterson tipped his son Drew Peterson off on the deal. He invested and made roughly $150,000. Drew, in turn, told his friend, hedge fund manager Bo Brownstein. Brownstein used the information to make more than $5 million for his fund and his relatives. Included in that number is Brownstein’s father, Norman. According to the New York Times, “Bo Brownstein bought shares of Mariner for his father’s account without his father’s knowledge, according to people briefed on the case.”
Clayton Peterson Was Sentenced
H. Clayton Peterson and Drew Peterson both pled guilty. Clayton Peterson was sentenced a few weeks ago. He was sentenced to two years of probation and three months house arrest. In his case, the judge opted to hand down the lighter sentence than the 12-18 month prison sentence called for under federal guidelines in light of Peterson’s admission of guilt and his spotless career. Peterson’s attorney, Drew Peterson has not been sentenced yet.