Stock broker used in a sentence
Prosecutors had pushed for a five-year prison term, arguing his crimes were a "form of cheating". However, New South Wales Supreme Court Justice Lucy McCallum handed down a minimum term of one year, saying a prison sentence would provide "real bite" as a deterrent to white-collar crimes.
Justice McCallum said white-collar crime was a serious offence and evidence in the case satisfied her that a custodial sentence was appropriate. The father of two then embraced his wife, PR executive Roxy Jacenko, before being led from the court by guards.
During the trial, the court heard Curtis received tip-offs from his former best friend, John Hartman. Prosecutors said Mr Hartman, who worked for Orion Asset Management, told Curtis when to buy and sell "contracts for difference" and at what price, using information not available to the public.
Mr Hartman was jailed in and served a month prison sentence for insider trading and related offences. Curtis's defence said Mr Hartman played a much larger role in the offending than he did, determining when it started and when it finished. The trial heard Mr Hartman and Curtis grew up in neighbouring homes in Mosman, on Sydney's north shore, and went to school together. Mr Hartman previously said the pair saw the offending as "a bit of a game" and a way to make money.
Prosecutors had argued that insider trading was not a victimless crime and that Curtis had seen an opportunity and run with it. Up until the guilty verdict, Justice McCallum said Curtis expressed "no contrition to any degree whatsoever" for his crimes.
However Justice McCallum was not convinced that his decision to repay the money showed any contrition because it was made "without admissions" to the crimes. Justice McCallum noted Curtis had no prior convictions and took into consideration a number of positive character references submitted to the court.
Former colleagues and family friends described Curtis as the hardest worker, a role model, and a doting father and husband. But Justice McCallum said the bearing she could give to this evidence in her sentencing decision was limited. First posted June 24, More stories from New South Wales. If you have inside knowledge of a topic in the news, contact the ABC.
ABC teams share the story behind the story and insights into the making of digital, TV and radio content. Read about our editorial guiding principles and the enforceable standard our journalists follow. The techniques used by fraudsters in online romance scams are similar to those found in domestic violence cases, according to new research. Do you have what it takes to be an Aussie champion or will you fall at the first hurdle?
Test your knowledge of the Commonwealth Games with our quiz. It was accepted Curtis was not the insider when the illegal trades were made. Banker convicted of conspiring to commit insider trading. Others opened brokerage accounts at reputable trading firms, gave Cohen the authority to buy and sell their stocks, but never allowed him to handle any money.
Many of his investors were guaranteed an unusually large 17 percent return on their investment every 30 days, according to knowledgeable sources. Essentially, he told his investors he was making specific stock purchases on their behalf, but in his name, when in fact he was either pocketing the money or investing it on his own.
Near the end, caught in a serious cash-flow crunch, Cohen was paying off earlier investors with the money he acquired from new investors, a scheme that eventually backfires on even the best con men. Often, he would confirm a sale with a simple note on his company stationery. Although Cohen has gone to the penitentiary for his crime, the lack of a paper trail has made it nearly impossible for federal and state investigators to follow the millions of dollars invested with him.
We go around in circles trying to find out what really happened. Emerson recalls an occasion in when he hired an analyst to evaluate Cohen. The only way to do a guy like Cohen is to run away from him. Yet he made a lot of money for a lot of people. The guy is sick. He has some kind of strange desire to get caught and at the same time has a desire to please people.
We even have some suspicions that he was investing so heavily in some small high-tech companies that he may have actually been able to manipulate the market. Word of his successes spread like wildfire.
Instead, his following grew for a very simple reason: He could pick the right stocks. His clients gladly spread the good news. Even those investors who fell prey to his scheme have never doubted his ability to analyze the stock market. So to comply with state law, they formed their own company, Stake Inc. The three were burned on two large investments with Cohen. But others lost even greater sums of money. Mitchell will not discuss her claims, says David Winston, her attorney.
Earlier this year, an angry group of about 50 creditors hauled Cohen into federal bankruptcy court seeking long-awaited answers to their questions.
Instead, the meeting only left the creditors more frustrated as Cohen refused to answer any of the 20 or so questions he was asked. Claiming he might incriminate himself, Cohen refused to answer such questions as: The product of a broken home at the age of 8, Cohen dreamed of being a stockbroker like his father. As a teen-ager, while other kids were pondering what they wanted to do with their lives, Cohen was busy performing odd jobs at a Seattle brokerage firm, learning the ins and outs of stock trading.
Later, he joined his father in the Los: Angeles area to become a stockbroker himself. In the early Seventies he left behind an unsuccessful marriage and moved to Dallas to work for a local business college. But soon he returned to his first love-stocks-and worked in the Dallas office of A. Then, in , Cohen had his first brush with the law. Cohen subsequently confessed his activities to the FBI. He made a deal with the federal government to plead guilty if he was given a pretrial diversion, an agreement that would not leave him with a permanent record.