Ex-Jefferies Hedge Fund Manager Guilty Of Insider-Trading

Oct 7 2010 | 12:34pm ET

A former Jefferies Group hedge fund manager has been convicted of insider-trading.

Joseph Contorinis was found guilty of one count of conspiracy and seven counts of securities fraud charges yesterday. The former general partner of Jefferies Asset Management’s Paragon Fund faces up to 20 years in prison at his sentencing in February.

Contorinis was arrested last February, accused of both leaking confidential information about the 2006 acquisition of supermarket chain Albertsons to family and friends, and of using it himself. All told, according to the authorities, the former made $11.6 million in illicit profits, while the Paragon fund earned an illegal $7.2 million.

Following a three-week-long trial in Manhattan federal court, it took a jury just two days to reject Contorinis’ argument that his frequent trading in Albertsons shares made it impossible for him to profit from the non-public information.

“On top of this office’s recent insider-trading convictions, today’s guilty verdict sends yet another strong message of deterrence to anyone who is thinking about gaming the system like Joseph Contorinis did,” Manhattan U.S. Attorney Preet Bharara said.

Contorinis’ conviction is the fourth in the Albertsons case. Three others pleaded guilty, including former UBS banker Nicos Stephanou, who served as a key witness against Contorinis.


In Depth

Whisky Business: The Ultimate Liquid Alternative Investment

Sep 15 2014 | 7:02am ET

David Robertson knows his single-malt whisky—he was the Master Distiller at the...

Lifestyle

Hedgies Rock Out For Children's Charity

Sep 15 2014 | 8:40am ET

It's that time of year again—when hedgies trade in their spreadsheets for guitars...

Guest Contributor

Volkered: How Financial Sector Reforms are Creating Opportunities for Hedge Funds

Sep 16 2014 | 11:28am ET

New regulations have dramatically curtailed proprietary trading activity in investment...

 

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    Aug 25 2014 | 11:21am ET

    As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…

 

Futures Magazine

September 2014 Cover

The London Whale: Rogue risk management

Credit default swaps brought down the London Whale and cost JPMorgan $6.2 billion. Here is how it happened.

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.