The U.S. Court of Appeals for the Second Circuit has held that a former MSD Capital employee convicted of insider trading must pay the legal bills for Sullivan & Cromwell’s work on behalf of the private equity company during federal prosecutors’ investigation.

The three-judge panel said Feb. 25 that investment analyst John Afriyie owed MSD Capital restitution for the legal bills incurred during a U.S. Attorney Office for the Southern District of New York investigation into the company for his crimes. However, the court said the company’s expenses incurred during the U.S. Securities and Exchange Commission’s related probe are not Afriyie’s responsibility.