Schottenfeld Insider Trading Cooperator Gets House Arrest

Law360, New York (April 18, 2012, 8:11 PM EDT) -- A former Schottenfeld Group LLC trader involved in a wide-ranging Wall Street insider trading scheme was sentenced to six months' house arrest Wednesday, dodging prison because he cooperated with prosecutors against his co-conspirators.

Gautham Shankar, 38, nicknamed “Shakes” by his ex-colleagues for his nervous demeanor, helped crack a ring of insider traders at Schottenfeld and opened the door to a series of successful criminal cases brought by New York federal prosecutors.

Shankar pled guilty in October 2009 to securities fraud for trading using illicit tips on...
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