Eric Holzer, a tax lawyer who worked at law firm Paul Hastings Janofsky & Walker, pleaded guilty today to criminal charges that he traded on stock tips received from former Lehman Bros. salesman Matthew Devlin. As previously discussed here, former day trader Jamil Bouchareb also pleaded guilty earlier this week in the same “Golden Goose” insider trading scheme that resulted in about $4.8 million in profits (also discussed here).
Prosecutors and the SEC allege that the ring made millions from Matthew Devlin’s misappropriation of confidential corporate information from his wife, a public relations executive specializing in mergers. His wife, Nina Devlin, was not accused of any wrongdoing.
“I knew Mr. Devlin was giving me material, non-public information that he got from his wife,” Bloomberg reports that Holzer told U.S. Magistrate Judge Debra Freeman. “I knew my trading was wrong.” Holzer reportedly faces up to 18 months in prison, and also agreed to forfeit $119,000 in proceeds of the crime.