Elliot Smith, a founding member of the Chicago Board Options Exchange, was sentenced today to two years probation for obstructing justice in an SEC insider trading investigation. As previously discussed here, Smith pleaded guilty in December 2008 to the obstruction charge.
Smith, who is 76 years old, could have received up to five years in prison. Instead, U.S. District Judge George B. Daniels of the SDNY sentenced Smith to two years probation, with five months to be served as home confinement, as well as a fine of $30,000.
Dow Jones reports that prosecutors had alleged that Smith, who was a managing director at Broadband Capital Management LLC at the time, “provided the SEC with fake memorandums and exhibits in connection with the regulator’s probe into possible insider trading. He provided false testimony to the SEC on at least one occasion in 2004, prosecutors said.”