Citing family issues, a federal judge let the former head of Howard Stern's accounting firm off without any prison time, but ordered him to pay a $20,000 fine for hoarding stock.

Gary Herwitz, 50, was sentenced to two years probation and was ordered to complete a mental health treatment program by Brooklyn federal court Judge Nicholas Garaufis. The $20,000 is about equal to the estimated profit Herwitz made from his September 2004 grab of 25,000 shares of Sirius Satellite Radio stock -- shortly before Stern announced he would be making the move to the satellite station from Infinity Broadcasting in a $500 million deal.

Herwitz, who worked for accounting firm Mahoney Cohen CPA PC, admitted he had overheard about Stern's plans from a co-worker.

Herwitz had faced up to 16 months behind bars. He settled insider trading charges brought by the Securities and Exchange Commission for just over $52,000 in December.

Previously on WebCPA: SEC Says CPA Traded on Stern's Move to Satellite (Dec. 20, 2005)

Register or login for access to this item and much more

All Accounting Today content is archived after seven days.

Community members receive:
  • All recent and archived articles
  • Conference offers and updates
  • A full menu of enewsletter options
  • Web seminars, white papers, ebooks

Don't have an account? Register for Free Unlimited Access