CRAIG DRIMAL SENTENCED IN MANHATTAN FEDERAL COURT TO 66 MONTHS IN PRISON FOR INSIDER TRADING

United States Attorney
Southern District of New York
AUGUST 31, 2011 ELLEN DAVIS,

PREET BHARARA, the United States Attorney for the
Southern District of New York, announced that CRAIG DRIMAL was
sentenced today in Manhattan federal court to 66 months in prison
for his participation in an insider trading scheme in which he
obtained and traded on material, nonpublic information (“Inside
Information”), including information misappropriated from the law
firm of Ropes & Gray. DRIMAL pled guilty to five counts of
securities fraud and one count of conspiracy on April 26, 2011.
U.S. District Judge RICHARD J. SULLIVAN imposed today’s sentence.
According to the Indictment, a Complaint previously
filed in this case, and statements made during the guilty plea
proceeding:

In 2007 and 2008, DRIMAL obtained Inside Information
from ZVI GOFFER and others about several mergers and acquisitions
of public companies, and traded based on that information. The
Inside Information included information provided by two Ropes &
Gray attorneys, ARTHUR CUTILLO and BRIEN SANTARLAS, regarding the
potential acquisition of 3Com Corporation and the potential
acquisition of Axcan Pharma, Inc., (“Axcan”). CUTILLO and
SANTARLAS delivered the Inside Information to JASON GOLDFARB,
another attorney, who provided the Inside Information to GOFFER.
GOFFER then delivered it to DRIMAL, who executed trades based on
the Inside Information. DRIMAL also traded in the stock of
Hilton Hotels Corporation based on Inside Information. He made
combined profits exceeding $10 million based on these trades.
Following the public announcement of the acquisition of Axcan,
DRIMAL delivered a cash payment to GOFFER for the Axcan tip.
* * *
In addition to the prison term, Judge SULLIVAN
sentenced DRIMAL, 55, of Weston, Connecticut, to 66 months in
prison and three years of supervised release, and ordered him to
pay forfeiture in the amount of $11 million and a $600 special
assessment fee.

CUTILLO, GOLDFARB, and SANTARLAS previously pled guilty
to conspiracy and securities fraud charges in connection with
this scheme. ZVI GOFFER was convicted after a one month jury
trial of conspiracy and securities fraud charges for his role in
the scheme. CUTILLO was sentenced to 30 months in prison;
GOLDFARB was sentenced to 36 months in prison; SANTARLAS’s
sentencing is scheduled for October 28, 2011, at 2:30 p.m.; and
ZVI GOFFER’s sentencing is scheduled for September 21, 2011, at
2:00 p.m.

Mr. BHARARA praised the investigative work of the FBI
and thanked the SEC for its assistance with the investigation.
This case was brought in coordination with President
BARACK OBAMA’s Financial Fraud Enforcement Task Force, on which
Mr. BHARARA serves as a Co-Chair of the Securities and
Commodities Fraud Working Group. President OBAMA established the
interagency Financial Fraud Enforcement Task Force to wage an
aggressive, coordinated, and proactive effort to investigate and
prosecute financial crimes. The task force includes
representatives from a broad range of federal agencies,
regulatory authorities, inspectors general, and state and local
law enforcement who, working together, bring to bear a powerful
array of criminal and civil enforcement resources. The task
force is working to improve efforts across the federal executive
branch, and with state and local partners, to investigate and
prosecute significant financial crimes, ensure just and effective
punishment for those who perpetrate financial crimes, combat
discrimination in the lending and financial markets, and recover
proceeds for victims of financial crimes.

Assistant U.S. Attorneys ANDREW FISH, REED BRODSKY, and
RICHARD TARLOWE are in charge of the prosecution.
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