Monday, 29 December 2014
Last updated 33 min 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.
Dec 1 2014 | 10:21am ET
As 2014 winds down, Northern Trust Hedge Fund Services executives took some time to share their outlook on trends facing the industry in 2015. Read more…
Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.