Freeman Agrees to $1.1-Million Fine, Suspension in Beatrice Deal
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NEW YORK — Robert M. Freeman, the former Goldman, Sachs & Co. executive convicted of insider trading in 1989, agreed Monday to surrender $1.1 million and to a three-year suspension from the securities industry.
Freeman and the Securities and Exchange Commission reached the agreement in what may be the last chapter in the government’s insider-trading probe of the 1986 Beatrice Companies Inc. takeover.
Freeman agreed to surrender $1.1 million, the amount he would have lost had he not traded on inside information about the Beatrice deal obtained from investment banker Martin Siegel, the SEC said. Freeman also agreed to a three-year ban on associating with any broker, dealer, registered investment adviser, investment company or municipal securities dealer, but he can apply for reinstatement after that period.
Freeman served four months in prison and paid a $1-million fine after he pleaded guilty to one count of mail fraud. Freeman, former head of risk arbitrage at the investment house, admitted he used inside information when he ordered the sale of Beatrice Companies Inc. stock in January, 1986.
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