Ex-Wilson Sonsini Worker Resumed Inside Trades, Gets PrisonBob Van Voris
A former Wilson Sonsini Goodrich & Rosati PC employee was sentenced to prison for resuming his insider trades in the face of a what a judge called a “flashing stop sign” -- the arrest of a co-worker in a separate scheme.
Dimitry Braverman, 42, a former computer-systems engineer at the marquee Silicon Valley law firm, admitted last year he pocketed almost $305,000 by using firm records to profit on companies that might be involved in acquisitions. Braverman resumed his illicit trades after being temporarily scared off by the 2011 arrest of Wilson Sonsini lawyer Matthew Kluger on unrelated insider-trading charges.
“If ever there was a wake-up call for you to stop your insider trading, that was it,” said U.S. District Judge Paul Engelmayer in Manhattan Wednesday before sentencing Braverman to two years in prison.
The sentence is less than the record 12 years Kluger got in 2012 but more stringent than the home detention Braverman requested. Prosecutors asked for a sentence of as long as three years and one month behind bars.
Wilson Sonsini, based in Palo Alto, California, has handled numerous merger deals for tech industry clients including Google Inc. in its $3.2 billion acquisition of DoubleClick Inc. Braverman’s job gave him access to attorney billing records and time sheets created when the firm opened new accounts or checked for conflicts of interest, according to prosecutors.
He used the records to identify companies involved in potential acquisitions, including Drugstore.com, Gymboree Corp. Inc., Epicor Software Corp. and Seagate Technology Plc, prosecutors said.
Braverman, who was born in Odessa, Ukraine, stopped his trading the day of Kluger’s arrest and didn’t start again for a year and a half. He resumed the illegal trades in November 2012, using an account he created in the name of his father-in-law in Russia.
Engelmayer also told Braverman to serve two years of supervised release and complete 100 hours of community service. He must also pay $520,000 to the Securities and Exchange Commission.
Kluger pleaded guilty in December 2011 to using information about 30 transactions in a 17-year scheme. His sentence is the longest ever in an insider-trading case. Billionaire hedge-fund manager Raj Rajaratnam got 11 years.
The case is U.S. v. Braverman, 14-cr-00748, U.S. District Court, Southern District of New York (Manhattan).