Diamondback Capital Partners and a former hedge fund manager at the firm have settled Securities and Exchange Commission charges stemming from insider-trading allegations against the latter.
Greenwich, Conn.-based Diamondback, which says it was never accused of any wrongdoing, agreed to pay $1 million in illegal profits it earned on Anthony Scolaro's trades. Scolaro pleaded guilty last year to participating in the Galleon Group insider-trading ring; that guilty plea led to Diamondback's offices being raided by the Federal Bureau of Investigation in November.
That raid, in turn, has contributed to more than $1 billion in redemption requests.
Scolaro settled the civil charges against him for $203,400.