Reporting John Cody
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CHICAGO (CBS) — A former partner in the prestigious accounting firm Deloitte and Touche has pleaded guilty to making $420,000 by trading on inside information about clients.
As WBBM Newsradio’s John Cody reports, Thomas P. Flanagan, 64, acknowledged in the plea agreement he profited on inside information about Sears, Best Buy, Motorola and Walgreens.
LISTEN: WBBM Newsradio’s John Cody reports
“The plea agreement states that those were Deloitte and Touche clients, so he obtained, and he was, in most instances, an advisory partner at Deloitte and Touche, and he received that information in the course of his duties,” said Assistant U.S. Attorney Jason Yonan.
In the plea agreement, Flanagan admitted that he received an illegal profit of $420,000. His son, Patrick, received at least $58,000 in illegal profit – although he was never charged.
Flanagan and his son paid more than $1.1 million in civil penalties to the Securities and Exchange Commission for insider trading two years ago.
Flanagan was a partner for more than 30 years at Deloitte, before he abruptly resigned in 2008.
Yonan says prosecutors are recommending Flanagan to serve a term of at least 3 years and 1 month in prison.
He will be sentenced on Oct. 25.