Former New Castle Funds executive, Mark Kurland, pleaded guilty to two counts of securities fraud on Wednesday. According to DealBook, Kurland agreed to forfeit $900,000 in ill-gotten gains from an insider trading scheme. He also said he would not challenge a sentence of 30 to 37 months in prison. Kurland could face a maximum of 25 years in prison.
DealBook reports that Kurland will not cooperate in the Galleon case investigations, contrary to prior speculation. Prosecutors claim that Kurland encouraged Danielle Chesi to trade stocks based on inside information and was aware of Chesi’s relationship with Galleon-founder Raj Rajaratnam.