Biglaw

Former Biglaw Partner Sentenced To Over 2 Years In Jail For Insider Trading

Prosecutors were pleased with the sentence.

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Walter Chet Little

In November, former Foley & Larder partner Walter “Chet” Little pleaded guilty to one charge of conspiring to commit insider trading as part of a plea agreement with the U.S. Attorney’s Office for the Southern District of New York. Yesterday, Little was sentenced to 27 months in prison by Judge Katherine Polk Failla and must forfeit ~$453,000 in illicit proceeds .

Little’s legal troubles began while he was a partner at Foley & Lardner. In June 2016, the Biglaw firm opened an investigation after learning about his trading activity. Little now admits he accessed the firm’s document management system to find and trade on non-public information, though not related to matters he worked directly on. The companies on whose stocks he traded on include Pentair PLC, truck maker Oshkosh Corp., Harley Davidson Inc., and snow plow maker Douglas Dynamics Inc.

As reported by Law360, though Little’s attorneys argued for no jail time, the judge felt the ethics breach was too great for that to be an appropriate sentence:

While Little’s attorneys relied heavily on arguments that his misdiagnosed mental health problems and substance abuse issues were largely to blame for his reckless behavior, Judge Failla said they’re a basis for a variance from the approximately three- to four-year guideline range, but don’t warrant a nonincarceratory sentence as Little had requested.

“There were so many oaths that were broken when he committed this offense,” Judge Failla said, citing Little’s obligations to his clients, his old firm and the Florida Bar.

She also noted Little’s actions were “calculated, repeated and persistent.”

U.S. Attorney Geoffrey H. Berman was pleased with the judge’s sentence saying it “underscores the seriousness of insider trading, as Little will now serve serious time in prison.”

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headshotKathryn Rubino is an editor at Above the Law. AtL tipsters are the best, so please connect with her. Feel free to email her with any tips, questions, or comments and follow her on Twitter (@Kathryn1).

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