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.”

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