NEW YORK, May 6 (Reuters) - A former Bear Stearns BSC.N registered representative was sentenced on Tuesday to three-years probation and a year of home confinement and ordered to pay a $300,000 fine for his part in an insider-trading case.

Ken Okada, 32, was among 13 people, including former employees of Wall Street firms such as Bank of America (BAC.N: Quote, Profile, Research), UBS AG (UBSN.VX: Quote, Profile, Research) and Morgan Stanley (MS.N: Quote, Profile, Research), who were criminally charged in 2007 in what authorities called one of the most pervasive insider trading rings since the 1980s. All have pleaded guilty.

Under a December plea agreement, Okada could have received up to 37 months in prison.

But U.S. District Judge Denny Chin accepted most of a pre-sentencing report that recommended probation, in part because others closer to the source of the leaks received probation for their roles.

Okada and Robert Babcock, described at the sentencing hearing as Okada's mentor, deduced that one of their clients knew before it became public that UBS analysts would be either raising or lowering their stock recommendations.

"Basically, they followed the pattern. They knew, not because they were told, but they deduced that the client was trading on insider information," the judge said.

The information about upcoming UBS analysts' upgrades and downgrades was used to execute hundreds of trades by the 13 and netted more than $17.5 million, Assistant U.S. Attorney Andrew Fish said at an earlier hearing.

In the Morgan Stanley insider trading scheme, information about certain companies' planned merger was leaked by Randi Collotta, then an attorney in the company's global compliance division, to her husband, Christopher, and Marc Jurman, according to court papers.

Jurman passed the information along to Babcock who passed it along to Okada, the judge noted. The profits made were passed back up the ladder.