Disgraced ex-Home Diagnostics head avoids jail time
The disgraced former CEO of Home Diagnostics has been sentenced for insider trading over the eventual sale of his old firm to Nipro, and he won't have to go to jail.
Bloomberg reports that 72-year-old George Holley will serve three years probation on two counts of securities fraud--much better than the 33 months to 41 months in prison he could have faced under sentencing guidelines. Additionally, a U.S. District Court judge ordered him to pay a $260,000 fine.
Back in August, he pleaded guilty to the two charges, admitting he whispered to at least 6 family members and friends that Nipro had planned to buy Home Diagnostics, a maker of blood glucose monitoring systems and disposable diabetic supplies. Nipro did just that in 2010, when it snatched up the company for $215 million. The sale announcement bumped Home Diagnostics' share price up 89%, Bloomberg notes, and the group involved made $261,000 thanks to the tip.
Each insider trading charge alone could have generated a sentence of up to 20 years.
Holley's attorney, Kevin Marino, told Bloomberg that "Mr. Holley has lived an extraordinary life marked by generosity of spirit and philanthropy. He regrets his foolish mistake."
Japan's Nipro, meanwhile, has had nothing to say on the matter.
- read the Bloomberg story