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

Firm Focus: Sustainable Insight Capital Bullish On ESG

Aug 12 2014 | 9:18am ET

Bruce Kahn spent over 15 years as a research scientist/consultant on environmental...

Lifestyle

Viking Manager In Rent Dispute

Aug 11 2014 | 4:14am ET

A hedge fund manager is demanding most of his money back from his former landlord...

Guest Contributor

Majority Of Inflows Go To Brand Name Hedge Funds

Aug 12 2014 | 9:00am ET

Since the market correction of 2008, a vast majority of hedge fund net asset flows...

 

Editor's Note

 

Futures Magazine

PREVIEW July/August 2014 Cover

Inside Futures' 500th Issue

The July/August 2014 issue is our largest in years—filled with the best trading strategies and stories from 43 years of being the primary publication for commodity, stock, options and forex traders.

The Alpha Pages

TAP July/August 2014 Cover

Real talk on alternative investments, business & finance

The Alpha Pages Editor's Note