Wednesday, 31 August 2016
Last updated 1 hour ago
Feb 10 2010 | 12:30pm ET
A convicted hedge fund fraudster is suing New York University for revoking his MBA degree.
Ayal Rosenthal sued the school in Manhattan federal court for breach of contract, saying the revocation was “unfair and excessive,” The New York Post reports. Rosenthal also took issue with the seven-month delay in holding a hearing on the issue in September 2007.
NYU, which last year won a court battle with another convicted hedge fund fraudster who was seeking his undergraduate degree from the university, said the delay was due to “the unusual nature of the violation.”
Rosenthal was convicted of passing on non-public information while he was an accountant at PricewaterhouseCoopers. According to the SEC, Rosenthal, who was attending NYU’s Stern School of Business part time when the alleged infractions occurred, was part of an insider-trading circle with his father and two brothers.
Zvi Rosenthal, the father, was charged with passing tips on his employer, Taro Pharmaceuticals, to his sons. The tips were used to trade Taro shares through Aragon Capital Advisors, a Rosenthal family-owned and controlled hedge fund.