NEW YORK — A former vice president at the prestigious investment firm of Goldman, Sachs & Co. on Monday became the second person to be sentenced in the Dennis B. Levine insider trading case, drawing a 30-day jail term and a $10,000 fine.
David S. Brown, 32, pleaded guilty Sept. 4 to having tipped Levine--through another member of the ring, former Shearson Lehman Bros. executive Ira D. Sokolow--to the terms of at least two impending takeover deals in which his firm was involved. Levine paid Sokolow $125,000 for the tips, prosecutors said, and Sokolow has told authorities that he passed $27,500 of that to Brown. Brown recalls receiving $30,000, according to his lawyer, David Frankel.
Brown also made at least $15,700 in illicit profits on his own trading, the Securities and Exchange Commission has charged.
Some of Brown's tips were passed by Levine to stock speculator Ivan F. Boesky, who in November agreed to pay $100 million to federal authorities in settling their insider trading charges against him.
Sokolow pleaded guilty earlier in connection with the case and is serving a prison term of one year and one day. Levine and two other members of the ring have also pleaded guilty but have not been sentenced.