A former human resource consultant from Atlanta had avoided prison after a federal judge acquitted him from the sentence sought by the prosecutors.
According to Information Place, Scott Allen admitted his involvement in participating to a $1.1 million insider trading scheme with a film producer but his following actions proved beneficial as he avoided prison on Tuesday.
Digging deeper to the story, CNBC reported that though federal prosecutors argued that a 37 to 46 months in prison would be a reasonable punishment for Scott Allen, U.S. District Judge Deborah Batts ruled the man won't serve prison time. Her argument is based on Allen's 'charitable service and good works' in the following years. Allen has ever since apologized for his behavior, citing that it is the most tragic mistake in his life.
"I made the most tragic mistake in my life eight years ago," he said. "I take full responsibility for my actions."
He pleaded guilty in 2012 in conspiracy and fraud charges for tipping there is an ongoing drug-company merger to Bennett. His plea was the result of cases by a hundred people in the office of Manhattan U.S. Attorney Preet Bharara, who has supported activities against insider trading. Allen's actions lead to Bennett making more than $1.1 million for illegal trades ahead of the mergers. According to the prosecutors, Bennett shared a cut of his profits with Allen, who received more than $100,000 in cash.
According to Reuters, Allen's sentencing was delayed due to uncovering the act of two criminal schemes at Brightlink Communications, who hired him in 2011. Allen revealed that in 2012, CFO Clive Marsh was "conducting a large-scale scheme to embezzle company funds".
Since then, Marsh was proven guilty of the crime and is now serving 46 months in prison for the crime of wire fraud. Allen on the other hand, continued assisting the FBI in uncovering further larger-scale fraud ring in 2013.
