James Gansman, a former E&Y partner in transaction services, was sentenced to one year and one day in jail on Monday after being convicted on six counts of securities fraud last year.
Gansman had provided his mistress, Donna Murdoch, with tips on mergers that Ernst & Young were advising which she subsequently traded on. Despite the help, Murdoch needed more money and she began an affair with another man who used the tips to make trades.
To add insult to injury, Murdoch ultimately cooperated with investigators and testified against Gansman. She is still awaiting sentencing after pleading guilty to fifteen charges of securities fraud, obstruction of justice, and making false statements.
Beside making bad relationship choices, Gansman’s hot tips were in violation of E&Y’s “written policies and the duty of trust owed to the firm’s clients.” That extra day in prison should give him just enough time to study better decision making.
Ex-Ernst & Young Partner Gansman Sentenced To 1 Year, Day In Prison [WSJ]
I learned this from a recent fraud case in the local news, but there is a reason he was sentenced to a year and a day. If someone is sentenced to one year or less, they must serve the full prison term. If that person is sentenced to a jail term of over one year (even a day over) then they have an excellent chance for early release. This guy will probably be out of jail in a couple months. Can any lawyers clarify or confirm this?