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

U.S. Treasury Moves on Reinsurance Loophole

Apr 24 2015 | 5:11pm ET

The U.S. Treasury Department has released proposed rules aimed at limiting the ability...

Lifestyle

Artivest Announces Funding Round Led by KKR & Co.

May 4 2015 | 9:56am ET

Artivest, a startup that provides individual investors with access to private equity...

Guest Contributor

Starting a ‘40 Act Fund Family? Don’t Forget Your Board

Apr 30 2015 | 7:18am ET

The convergence of the hedge fund and mutual fund worlds continues unabated, as...

 

Editor's Note