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 securities fraud and conspiracy. At the time, he 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 three homes and a time-share interest in a condominium in Mexico, they said.
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 securities fraud and conspiracy.
