Attorney to Serve 39 Months for Insider Trading Scheme with Law School Pal

On Thursday, Stanko Grmovsek was sentenced to 39 months in prison for his role in an insider-trading scheme with his former law school roommate, Gil Cornblum. After the pair graduated from Osgoode Hall School of Law in 1994, Grmovsek began using confidential information obtained by Cornblum to make illegal trades – prosecutors say Grmovsek may have made as much as $10 million between 1994 and 2008 through insider trading.

Cornblum obtained the confidential corporate information while working as an associate at Sullivan & Cromwell and then as a partner at Dorsey & Whitney. Dorsey & Whitney fired Cornblum in 2008; he committed suicide in October 2009 on the eve of a plea deal.

Grmovsek, who practiced law until 1997, when he quit to work exclusively on the insider-trading scheme, plead guilty last year to insider-trading charges in Canada and the U.S. In addition to the prison term, Grmovsek must disgorge all profits and he is permanently banned from making further securities purchases or serving as an officer or director at a registered firm.