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ID:958110
User:72.37.242.12
Article:Dennis Levine
Diff:
(Insider trading)
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| death_date =
 
| death_date =
 
| death_place =
 
| death_place =
| charge = [[Securities fraud]] ([[insider trading]]), [[tax evasion]], [[perjury]]
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| | conviction = June 5, 1986 (pleaded guilty)
| conviction = June 5, 1986 (pleaded guilty)
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| conviction_penalty = Two years in federal prison, $362,000 fine, $11.5 million disgorgement, lifetime ban from securities industry
 
 
| conviction_status = Released in 1988
 
| conviction_status = Released in 1988
 
| occupation = [[Investment banking|investment banker]]
 
| occupation = [[Investment banking|investment banker]]
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Bahamian Attorney General [[Paul Adderly]] issued an opinion that stock trading was separate from normal banking transactions, and thus was not subject to the bank secrecy laws. The bank was thus free to reveal Levine's name, and he was arrested soon afterward. At the same time, he was sued by the SEC.<ref name="Den"/>
 
Bahamian Attorney General [[Paul Adderly]] issued an opinion that stock trading was separate from normal banking transactions, and thus was not subject to the bank secrecy laws. The bank was thus free to reveal Levine's name, and he was arrested soon afterward. At the same time, he was sued by the SEC.<ref name="Den"/>
   
On June 5, 1986, Levine pleaded guilty to [[securities fraud]], [[tax evasion]] and [[perjury]]. He also agreed to cooperate with the government and revealed the other members of his insider trading ring. Levine also settled the SEC's charges, agreeing to [[disgorgement (law)|disgorge]] $11.5 million--at the time, the largest such penalty in SEC history. He also agreed to a lifetime ban from the securities industry. Levine also agreed to pay $2 million in back taxes out of the amount he disgorged to the SEC.<ref>Hiltzik, Michael A. [http://articles.latimes.com/1986-06-06/business/fi-9158_1_insider-trading Levine Guilty of fraud, perjury and tax evasion]. [[Los Angeles Times]], 1986-06-06.</ref><ref name="Den"/>
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On June 5, 1986, Levine pleaded guilty to insider trading and related offenses. Levine also settled the SEC's charges, agreeing to [[disgorgement (law)|disgorge]] $11.5 million--at the time, the largest such penalty in SEC history. He also agreed to a lifetime ban from the securities industry.
   
Subsequently, Levine directly implicated powerful [[arbitrage]]ur [[Ivan Boesky]], and information from the Boesky case also implicated another prominent player in the mergers and acquisitions circle, [[Martin Siegel]]. Both Boesky and Siegel subsequently pleaded guilty. Due in part to this cooperation, federal judge [[Gerald Goettel]] imposed a lenient sentence of two years in prison and a $362,000 fine. However, since Levine had been stripped of nearly all of his liquid assets by the SEC and [[IRS]], Goettel did not "commit" the fines, meaning that he would not be held in [[contempt of court]] if he left prison without paying them. At sentencing, Goettel said that Levine had helped expose "a nest of vipers on Wall Street."<ref>Widder, Pat. [http://articles.chicagotribune.com/1987-02-21/news/8701140034_1_dennis-b-levine-insider-trading-charges-wall-street Inside trader gets 2 years, $360,000 fine]. [[Chicago Tribune]], 1987-02-21.</ref>
 
   
 
Years later, Levine wrote in ''Inside Out'' that he considered fighting the government's case on the basis that it circumvented Bahamian law in order to obtain most of the evidence against him. However, he said, the possibility of additional charges in a superseding indictment—possibly including the powerful [[Racketeer Influenced and Corrupt Organizations Act]]—and concern about the effects on his family led him to conclude that this was a battle he couldn't win.<ref name="InsideOut"/>
 
Years later, Levine wrote in ''Inside Out'' that he considered fighting the government's case on the basis that it circumvented Bahamian law in order to obtain most of the evidence against him. However, he said, the possibility of additional charges in a superseding indictment—possibly including the powerful [[Racketeer Influenced and Corrupt Organizations Act]]—and concern about the effects on his family led him to conclude that this was a battle he couldn't win.<ref name="InsideOut"/>
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