A one-time portfolio manager at a top New York hedge fund has been sentenced to 18 months in prison
Stefan Lumiere was found guilty earlier this year
Lumiere is the ex-brother in law of Visium's founder, Jake Gottlieb, a physician who founded the firm, which became known for investing in healthcare stocks.
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At its peak, Visium managed $8 billion, and its shuttering marked one of the most notable insider trading cases in recent years.
Sanjay Valvani, a star fund manager overseeing the firm's flagship healthcare fund, committed suicide last year days after he was accused of insider trading. Valvani had maintained his innocence. Gottlieb hasn't been accused of any wrongdoing.
Lumiere's boss, Chris Plaford, pleaded guilty and cooperated with the government investigation.
A spokesperson for Visium didn't respond to a request comment.
Jonathan N. Halpern and Jonathan H. Friedman, who are lawyers for Lumiere at law firm Foley & Lardner LLP, said in a statement:
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“We are pleased that our arguments resonated with the court, which imposed a sentence of 18 months rather than applying the range of 11 to 14 years under the Sentencing Guidelines that the government presented. Mr. Lumiere looks forward to pressing his claims on appeal.”
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