Former Metromedia Fiber Networks CEO Stephen Garofalo will return “$1.5 million in ill-gotten IPO gains to New York Attorney General Eliot Spitzer’s office, settling a case the attorney general brought against him last year,” reports the New York Post.
According to the Post, about $1.1 million will be deposited in the Litigation Trust Fund, while the remaining $400,000 will be given to two New York law schools to fund securities arbitration programs.
Garofalo was one of the members of the Club Jack, which allowed them access to shares in hot telecom public offerings for quick sale as long as they did business with Jack Grubman and his employer, Citigroup owned Salomon Smith Barney.
In his zealousness to pursue and retrieve the money, New York Attorney General Elliot Spitzer has basically let all these criminals walk away free. Now try stealing a $100 dollars from your neighborhood bodega. You will spend next ten years in Rikers. however, if you still millions then you can get away scott free.