Broker Avoids Prison after Stealing Corporate Secrets from Wife

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Broker Avoids Prison after Stealing Corporate Secrets from Wife by Surajit Sen Sharma

On Friday, Matthew Devlin, 38, pleaded guilty to charges of having stolen corporate secrets from his executive wife and sharing them with friends. Devlin, a former Lehman Brothers broker narrowly avoided prison, while the judge described his crime as a “tragic and senseless” act for a paltry gain of $23, 000.

03/26/12

was an executive at Brunswick Group and worked with clients on mergers and acquisitions. She is no longer

Devlin walked away with

working at the firm, though she is not accused of any

a light sentence as he

wrongdoing.

cooperated with the authorities (sometimes wearing a recording device) and helped the authorities convict

The information that Devlin traded was obtained by

four persons and obtain civil judgment against two

listening to his wife’s conversations and assessing

others in insider trading cases.

the implications of her travel schedule. The illegally obtained information included deals like the acquisition

William Pauley, the U.S. District Judge who sentenced

of Novartis AG by Eon Labs in 2005, InBev’s acquisition

Devlin to three years’ probation commented “He

of Anheuser-Busch, and Electronic Arts Inc’s hostile bid

betrayed the trust of everyone … All of it completely

in 2008 for Take-Two Interactive Software Inc.

tragic and senseless for a sum of money that to his benefit was a rounding error in his compensation.”

Though Devlin received only a paltry sum in exchange of his betrayal of the trust of his wife, four of his

Devlin, who was in tears, told the judge that his

friends made millions trading on the inside information.

conduct was “reckless, selfish and inexcusable.” While

The office of the Manhattan U.S. Attorney requested

sentencing Devlin, the court also took into account the

the court to be lenient towards Devlin considering his

facts that Devlin is now the primary care provider for

role in helping to convict the four persons.

the couple’s three-year old son, and that he did not have any career left in the industry. He betrayed his

The other four who pleaded guilty were Miami day

wife for a paltry sum, and was compelled to betray his

traders Jamil Bouchareb, Daniel Corbin, Frederick

friends in crime later to save his own skin.

Bowers, and Eric Holzer – a former tax lawyer at Paul, Hastings, Janofsky & Walker in New York.

Devlin’s crime was exposed in December 2008 by the media with details of his betrayal of his wife, Nina

The case is USA v Devlin, U.S. District Court for the

Devlin, who was a public relations executive. Nina

Southern District of New York, No. 08-01307.

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