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Westonite Goes to Prison for Insider Trading

WESTON, Conn. — Craig Drimal, 55, of Weston, was sentenced to five-and-a-half years in prison by U.S. District Judge Richard J. Sullivan in Manhattan after being charged with insider trading in a deal that made $10 million, according to a statement from the U.S. Department of Justice.

Drimal received a sentence of 66 months in prison and three years of supervised release and was ordered to forfeit $11 million in proceeds. Drimal pleaded guilty to five counts of securities fraud and one count of conspiracy on April 26.

According to court documents, Drimal obtained inside information from Zvi Goffer and others in 2007 and 2008 about several mergers and acquisitions of public companies and made trades based on that information. This included information provided by two Ropes & Gray attorneys, Arthur Cutillo and Brien Santarlas, regarding the potential acquisition of 3Com Corp. and the potential acquisition of Axcan Pharma Inc. Cutillo and Santarlas delivered the Inside Information to Jason Goldfarb, another attorney, who provided the inside information to Goffer, who then delivered it to Drimal.

Drimal executed trades based on the information and traded in the stock of Hilton Hotels Corp. He made combined profits exceeding $10 million and delivered a cash payment to Goffer for the Axcan tip.

Cutillo, Goldfarb and Santarlas previously pleaded guilty to conspiracy and securities fraud charges in connected with this scheme. Zvi Goffer was convicted of conspiracy and security fraud charges. Cutillo was sentenced to 30 months in prison; Goldfarb was sentenced to 36 months in prison and Santarlas’ sentencing is scheduled for Oct. 28; and Zvi Goffer’s sentencing is scheduled for Sept. 21.

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