Ex-Hedge Fund Managers Settle SEC Insider-Trading Charges

Jan 26 2010 | 6:13pm ET

Two hedge fund managers implicated in the Galleon Group insider-trading scandal, including one that formerly worked at SAC Capital Advisors, have settled Securities and Exchange Commission charges.

Ali Far and Richard Choo-Beng Lee, founders of the now-defunct Spherix Capital, agreed to pay $2.1 million to settle the SEC’s lawsuit. The two have already pleaded guilty to criminal charges and are cooperating with prosecutors in a case that has snagged 21 people, including Galleon Group founder Raj Rajaratnam.

U.S. District Judge Jed Rakoff must approve the settlement, which includes the disgorgement of all illegal profits from insider-trading, the SEC said.

According to Lee’s cooperation agreement with the government, he has been trading on non-public information since 1994, including during his stint at SAC, which ended in 2004. Neither SAC nor anyone still working for the Stamford, Conn.-based hedge fund giant have been accused of any wrongdoing in the case.


In Depth

Steinbrugge: Top 10 Hedge Fund Industry Trends for 2017

Jan 3 2017 | 9:03pm ET

Each year, Agecroft Partners' Don Steinbrugge predicts the top hedge fund industry...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

DarcMatter: The Top Trends in Alternative Investments for 2017

Jan 13 2017 | 8:22pm ET

The $7 trillion alternative investments industry is poised for continued growth...

 

From the current issue of

The U.S. Commodity Futures Trading Commission (CFTC) ordered The Goldman Sachs Group Inc., and Goldman, Sachs & Co. to pay a $120 million penalty for attempted manipulation and false reporting of ISDAFIX Benchmark Rates, a global benchmark for interest rate products.