Thursday, 20 November 2014
Last updated 7 hours ago
Jan 23 2012 | 2:06pm ET
In the wake of new insider-trading charges against two former employees, hedge fund Diamondback Capital Management has taken another step towards putting the damaging scandal behind it.
The Stamford, Conn.-based hedge fund—the only one of the four hedge funds raided in November 2010 to remain standing—agreed to pay more than $9 million to settle with the Securities and Exchange Commission. The firm will pay a $3 million fine and surrender $6 million in profits earned on trades made by former portfolio manager Todd Newman, who was arrested last week. Former analyst Jesse Tortora pleaded guilty in the case and is cooperating with prosecutors.
"We believe that the proposed settlement appropriately sanctions the misconduct while giving due credit to Diamondback for its substantial assistance in the government's investigation and the pending actions against former employees and their co-defendants," SEC New York chief George Canellos said.
In addition to cutting a deal with the SEC, Diamondback won a non-prosecution agreement from federal prosecutors.
"We are gratified finally to have reached closure on the government proceedings, and deeply regret the difficulties caused to our investors during the last 14 months," Diamondback wrote to investors.
Diamondback's assets under management have fallen by more than half as investors bolted the firm following the Federal Bureau of Investigation raid.
Nov 4 2014 | 9:45am ET
Data management is important to every business, but for hedge funds, it is critical. FINalternatives recently asked Peter Sanchez, CEO of Northern Trust Hedge Fund Services, how fund managers can deal with the demands of managing data while at the same time remain transparent and abide by operational best practices. Read more…
Reg NMS created a huge bifurcation in equity markets and while much of what has followed has been positive, in terms of lower fees and greater liquidity, many traders would like to see the market come...