Well sometimes a financial company isn't too big to jail, so we can create a category of Small Enough to Jail I guess. The latest is SAC Capital.
Jon Horvath, a former analyst at SAC Capital Advisors LP who pleaded
guilty to passing illegal tips to one manager at the hedge fund, also
funneled inside information to another supervisor, U.S. regulators said
in a lawsuit that may help accelerate the massive criminal investigation
of SAC and its founder, Steven A. Cohen.
SAC yesterday agreed to pay a record $616 million to settle SEC
allegations that Sigma and another affiliate, CR Intrinsic Investors,
made illegal trades using nonpublic information. SAC and the affiliates
didn’t admit or deny wrongdoing in the accord. Cohen hasn’t been sued
personally by the SEC or charged with a crime.
Horvath’s illegal tips helped SAC earn more than $6.4 million in
profit and avoided losses, according to the SEC complaint filed
yesterday. The SEC filing cited some of the same internal
e-mails that were included as evidence in the criminal trial against two
of Horvath’s co-defendants, Level Global Investors LP co-founder
Anthony Chiasson and former Diamondback Capital Management LLC portfolio
manager Todd Newman. They were convicted in December and await
sentencing.
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