Monday, 24 October 2016
Last updated 2 days ago
Aug 9 2011 | 12:47pm ET
Another hedge fund has been ensnared in another insider-trading scandal.
Father and son H. Clayton and Drew Peterson pleaded guilty to securities fraud and conspiracy charges on Friday. And Drew Peterson, who is cooperating with prosecutors, admitted to tipping off a hedge fund, which, in turn, made $4.6 million in allegedly ill-gotten profits on the information.
The Denver-based hedge fund was not identified in either the criminal complaint or the Securities and Exchange Commission lawsuit. But it was notified in advance about oil-and-gas company Mariner Energy’s acquisition by Apache Corp. in April 2010.
Drew Peterson told the hedge fund manager that his father, a Mariner director, “had recently attended Mariner board meetings and something good was going to happen for Mariner.”
In addition to the $4.6 million the hedge fund manager earned for the fund, he made $130,000 for himself and $305,000 for his relatives. The Petersons earned $2.7 million on the insider information.