Salesman In CDS Trial Denies Wrongdoing In Hedge Fund Deal

Apr 22 2010 | 11:56am ET

A Deutsche Bank bond salesman on trial for insider-trading testified that he did not know VNU Group credit-default swaps were restricted when he sold them to a portfolio manager at hedge fund Millennium Partners.

According to Deutsche Bank’s July 2006 restricted list, employees were limited to making markets in VNU swaps or taking unsolicited offers. Jon-Paul Rorech is accused of passing on non-public information about a VNU bond offering to Millennium’s Renato Negrin, who is also his co-defendant in the case.

“I’m surprised to hear we’re restricted to non-soliciting because no one ever told us that in New York,” Rorech testified.

Rorech also said that a key part of the prosecution’s case—when he and Negrin switched to cell phones—was Negrin’s idea.

“I wish it never happened,” he said. “I certainly had nothing to hide there.”


In Depth

Malik: The Science of Deal Sourcing 201

Aug 27 2015 | 5:35pm ET

Deal sourcing is understandably a hot topic among private equity firms because it...

Lifestyle

Rolling Art Advisors Marketing Collectible Car Fund As Uncorrelated Alternative

Aug 27 2015 | 6:47pm ET

A new fund is trying to provide investors with greater access to an emerging asset...

Guest Contributor

FATCA for Hedge Funds: Eight Common Pitfalls

Sep 1 2015 | 10:56am ET

FATCA is now a way of life for those in the financial industry and most professionals...

 

Editor's Note