NEW YORK — A New York lawyer whose insider trading case was the first to come before a federal jury in 1 1/2 years was sentenced Tuesday to a two-year prison term by a federal judge who upbraided him for his "absolute abandonment of integrity."
Israel G. Grossman, 34, was convicted Aug. 18 of 38 counts of having passed secret information about a financial restructuring planned by Colt Industries in 1986 to a group of friends and relatives. Grossman's law firm, Kramer, Levin, Nessen, Kamin & Frankel, represented Colt's pension plan trustees in the transaction. The ring made profits of about $1.5 million, prosecutors said.
Judge Richard Owen rejected a defense plea that Grossman receive a suspended sentence or be forced to undertake community service. "I don't want to send a message that if you get caught (at insider trading) you will get a suspended sentence," said the judge, who is known for imposing severe criminal penalties. Owen also fined Grossman $25,000, the amount that prosecution witnesses contended that he was directly paid for his inside tips.
Grossman, the father of five children ranging from 1 1/2 to 9 years old, will have to serve between eight and 16 months of his two-year prison term, federal procedures require.