By Casey Sullivan
Oct 26 (Reuters) - A former Deloitte & Touche LLP accounting
partner was sentenced to 21 months in prison on Friday for
insider trades in stocks of his corporate clients including Best
Buy Co Inc, Sears Holdings and Walgreen Co, according to
the U.S. Department of Justice.
Thomas Flanagan, 65, who pleaded guilty in August to one
securities fraud count in federal court in Chicago, was also
fined $100,000 and ordered to perform 200 hours of community
service after he is released from prison.
Flanagan will begin his prison sentence on Jan. 15.
Joel Levin, a partner at Perkins Coie in Chicago who
represents Flanagan, declined comment late Friday. Assistant
U.S. Attorney Jason Yonan, the lead prosecutor in the case
against Flanagan, did not immediately respond to a request for
comment. A Deloitte spokesman did not immediately return a
request for comment.
According to his plea agreement, Flanagan illegally bought
or sold shares and options in Best Buy Co, Sears Holdings Corp
and Walgreen Inc, on whose accounts he was Deloitte's advisory
partner, and Motorola Inc, where he was on a non-audit
Flanagan's scheme was based on advance knowledge of
quarterly results for Best Buy, Sears and Walgreen; a 2007
purchase by Walgreen of pharmacy services company Option Care
Inc; and a cost-cutting plan and weak mobile phone sales report
Flanagan's illegal trades took place between December 2006
and May 2008 in accounts he controlled and in the names of his
wife and two sons. The defendant also gave tips to a family
member who made at least $58,000 of illegal profit, the plea
agreement said. The family member was not charged.
The case is U.S. v. Flanagan, U.S. District Court, Northern
District of Illinois, No. 12-cr-00510.
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