Inside Trader in Albertsons Case Sentenced

SN STAFF

NEW YORK — A money manager convicted of making insider trades to profit form the sale of Albertsons was sentenced last week to six years in prison. Joseph Contorinis, a manager with Jefferies Paragon Fund, was convicted in October of securities fraud and conspiracy for trading on tips provided by another banker, Nicos Stephanou of UBS. Stephanou, who cooperated with the federal prosecutors in the case in exchange for a lenient sentence, served as an advisor to Cerberus Capital Management, the hedge fund that led a consortium of buyers in the Albertsons breakup. Prosecutors said Contorisis’ trades led to $7 million in illegal profits.