The U.S. Securities and Exchange Commission said Thursday that it has banned former Denver money manager Drew “Bo” Brownstein from working in the securities industry and suspended H. Clayton Peterson from serving as a director or officer at a public company.
The sanctions were the latest in an insider trading case the SEC brought against the two and Peterson’s son Drew, who also was banned from working with anyone in the securities industry.
Back in April 2010, Peterson tipped his son off that Apache Corp. was about to acquire Mariner Energy, where he served as a director, the SEC alleges.
The younger Peterson reaped more than $200,000 for himself and family members, and passed the tip on to friends, including Brownstein, who made $130,671 personally, $305,050 for family members and $4.6 million for the Big 5 hedge funds he supervised, according to regulators.
Clayton Peterson, once the managing partner of Arthur Andersen’s Denver office , can no longer appear before the SEC as an accountant. He had earlier served three-months of home confinement in the case.
Brownstein currently is serving a 366 day sentence in federal prison in Englewood. The three agreed earlier to pay a total of $4.7 million to the SEC in the case.
