Tuesday, April 28, 2009
An attorney was summarily disbarred by the New York Appellate Division for the First Judicial Department. The court described the basis on its decision to disbar as a result of a federal felony conviction:
During his plea allocution respondent admitted that between 2001 and 2005 he, along with his father, his brother and others, engaged in an insider trading scheme after receiving non-public, material information from his father who was an employee at Taro Pharmaceutical Industries, Ltd. Respondent admitted that he knew that when he traded in Taro securities he was engaging in conduct that violated the securities law by executing options trades and by profiting on that information, and that he tipped off others regarding the inside information so that they too could profit. The criminal information to which respondent pled guilty alleged that he received $66,000 in kickbacks from a tippee for the inside information. At sentencing, respondent acknowledged that he obtained an "ill-gotten" personal profit of between $600,000 and $800,000 as a result of his participation in the insider trading scheme. He further conceded that he would lose his law license as a result of his criminal actions.
The court concluded that summary disbarment was appropriate because the federal offense was "substantially similar" to the state crime of insider trading. A news report on the underlying case is linked here. (Mike Frisch)