Ex-Consultant Avoids Jail Time In Insider Trading Case

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Written By admin at Saturday, August 11th, 2012


A former partner at consulting firm A.T. Kearney Inc. avoided jail time on Friday after admitting to making improper trades ahead of vitamin maker NBTY Inc.’s acquisition by private-equity firm Carlyle Group two years ago.

Federal prosecutors in Brooklyn, N.Y., had alleged that Sherif Mityas, a former vice president and partner in Kearney’s Chicago office, learned in a conference call with Carlyle executives in May 2010 that the private-equity firm, a client, intended to acquire NBTY. The deal was announced in July 2010.

Mr. Mityas, who served for a time as Movie Gallery Inc.’s chief executive before the firm sought bankruptcy protection in 2010, allegedly made more than $ 25,000 in illicit profits when the $ 4 billion deal was announced in July 2010, prosecutors said.

On Friday, U.S. District Judge Carol B. Amon in Brooklyn sentenced Mr. Mityas to three years probation and 20 hours of community service per week until he finds employment or enters a job training program.

Mr. Mityas had faced up to 1 year and four months in prison under federal sentencing guidelines, according to court papers filed by prosecutors.

A lawyer for Mr. Mityas didn’t immediately return a phone call seeking comment Friday.

Mr. Mityas pleaded guilty to a single count of securities fraud in March. He also agreed to pay more than $ 78,000 to settle a parallel civil case by the Securities and Exchange Commission.

A.T. Kearney has previously said it fully cooperated in the probe and that Mr. Mityas violated its policies.

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