Tuesday, 31 May 2016
Last updated 15 min ago
Sep 2 2011 | 11:10am ET
The Securities and Exchange Commission accused a New Jersey hedge fund manager of overseeing an insider-trading ring that produced almost $4 million in illegal profits.
James Turner, head of Clay Capital Management, received confidential information about three companies from his brother-in-law, Scott Vollmar, the SEC alleges. The two men also tipped off Turner's friend Scott Robarge and Vollmar's neighbor Mark Durbin, according to the complaint.
Vollmar worked at Autodesk Inc., learning of the company's planned tender offer for Moldflow prior to its announcement in 2008. He passed that tip on to Turner, as well as information about Autodesk's fourth quarter 2008 earnings. That information helped the four men and the hedge fund earn $3.4 million.
Turner and Clay Capital also traded on confidential information about Salesforce.com Inc. provided by Robarge, who was a recruiting technology manager at the company, the SEC alleges. That tip earned the four almost $50,000, according to the complaint.
Robarge and Durbin have settled the SEC allegations, agreeing to pay almost $500,000 and $18,000, respectively.