A former trader, who had worked out of the Galleon Group office, faces up to 7 years, 3 months after pleading guilty to insider trading.  Craig Drimal, an unaffiliated trader who worked out of Galleon Group's offices, was alleged to have improperly traded ahead of private-equity buyouts of 3Com Corp., Hilton Hotels Group and Kronos Inc.  It's estimated that he made as much as $11.5mn on the trades.

Drimal pleaded guilty in May to 5 counts of securities fraud and 1 count of conspiracy.  Prosecutors argued for a sentence of between 5 years, 10 months in prison and 7 years, 3 months.  Drimal's lawyers countered with a shorter, more lenient sentence - one involving community service or home confinement.

Several others wrapped up in this case:  Ropes & Gray lawyers Brien Santarlas and Arthur Cutillo, provided the original insider tips, lawyer Jason Goldfarb, who received some of that nonpublic information and then passed it along to former Galleon trader Zvi Goffer.  Finally, Goffer passed the information along to Drimal.

Santarlas and Cutillo both pleaded guilty to criminal charges, as did Goldfarb.  Goffer was convicted of criminal charges earlier this year.   [WS Journal, 8/26/11]