October 28, 2009 9:51 AM
Insider Trading Probe of ex-Dorsey Partner Ends in Tragedy
Posted by Zach Lowe
A former partner at Dorsey & Whitney killed himself the day before he and a law school classmate were to plead guilty to insider trading charges, according to the Toronto Globe and Mail and the New York Law Journal, an Am Law Daily sibling publication.
Authorities found the body of Gil Cornblum, 39, below a bridge in Toronto on Monday, the day before he and Stanko Grmovsek, Cornblum's former classmate at Osgoode Hall School of Law in Toronto, were to admit their guilt in an insider trading scheme that dated to Cornblum's days as an associate at Sullivan & Cromwell in the 1990s, the NYLJ says. The two men reportedly made about $10 million from the scheme, which involved Cornblum feeding tips to Grmovsek about pending corporate deals his firms were working on, according to court papers. While at S&C, Cornblum would arrive to work in the morning before other lawyers and firm staffers so he could search for inside information, the NYLJ reports.
Grmovsek pleaded guilty to insider trading charges in courts in Toronto and New York Tuesday and will likely be sentenced to between three and four years in prison, the NYLJ says. Cornblum first learned of the insider trading inquiry last year and "took responsibility for his actions," his attorney told the Globe and Mail. Dorsey fired him after an internal probe that began when the charges came to light last year, the NYLJ says. Cornblum's wife told the Globe and Mail that her husband had battled depression for years.Make a comment