A federal judge in New York has ordered H. Clayton Peterson to pay a $400,000 fine for sharing insider information with his son and pressuring him to trade on the tip.
U.S. District Judge Robert Patterson last month sentenced Peterson to two years’ probation, including three months of home confinement, for Peterson’s guilty pleas to charges of securities fraud and conspiracy. Federal sentencing guidelines called for 12 to 18 months of jail time, but Patterson said Peterson’s clean record, distinguished career and decorated military service merited a more lenient sentence.
At the time, Patterson said he was considering imposing a $400,000 fine and requested the parties to submit arguments. He filed his order last week.
Peterson’s attorneys suggested a $126,000 fine, arguing that the former Arthur Anderson chief in Denver and Mariner Energy director has limited assets and little opportunity for future earnings. Peterson, 65, has liquid assets of $2.1 million and real estate worth an estimated $1 million, including homes in Denver, Beaver Creek and Phoenix, and a six-week share of a condominium in Cabo San Lucas, Mexico, they said.
Peterson faces a civil action from the U.S. Securities and Exchange Commission that could result in additional fines.
In his order, Patterson said he doubted the stated valuation of Peterson’s homes, and he estimated that Peterson’s liquid assets would afford him more than $100,000 a year in retirement.
In April 2010, Peterson shared confidential information about a pending acquisition of Mariner with his son Drew Peterson, who traded on it for a net gain of about $63,000.
Drew Peterson shared the information with Denver hedge-fund manager Bo Brownstein, who netted $2.5 million and pleaded guilty last month to securities fraud. Drew Peterson has pleaded guilty to charges of securities fraud and conspiracy. Both are awaiting sentencing.
Greg Griffin: 303-954-1241 or ggriffin@denverpost.com
