CDS Insider-Trading Case Winds To Close

May 3 2010 | 10:47am ET

The Deutsche Bank bond salesman at the center of a hedge fund insider-trading case did nothing wrong, his lawyer said during closing arguments.

The Securities and Exchange Commission, in its first-ever insider-trading case involving credit-default swaps, alleges that Jon-Paul Rorech illegally tipped off former Millennium Partners portfolio manager Renato Negrin about an upcoming bond offering from Dutch media company VNU Group. Negrin, also on trial in the case, is accused of making $1.2 million on the swaps he bought in 2006 after the VNU deal was announced.

But Rorech testified that he did not know that VNU CDS were restricted when he spoke with Negrin. His lawyer, Richard Strassberg, told the jury, “everything he knew he was allowed to share with customers.”

Negrin has also denied any wrongdoing, testifying that any information received from salesmen like Rorech “is assumed to be public.”

The legal teams for both men have also argued that the SEC has no jurisdiction over CDS. The defense says the contracts are not securities.


In Depth

Part II: Roubini Talks Risk, Recovery And The Threat Of A Triple Dip Recession

Oct 21 2014 | 12:41pm ET

In the second half of our interview with Nouriel Roubini, FINalternatives editor...

Lifestyle

Balyasny Pays Over $6M For Lakefront House

Oct 22 2014 | 10:29am ET

A venture headed by hedge fund manager Dmitry Balyasny just paid $6.2 million for...

Guest Contributor

Hedge Funds Weather A Data Management Perfect Storm

Oct 22 2014 | 12:28pm ET

From a regulatory standpoint, nearly every development since the crisis has placed...

 

Videos

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

October 2014 Cover

Demeter: Family affair

David and James Hamman launched their fundamental Livestock and Grains Program in March of 2010 but it really was decades in the making.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.