Diamondback SEC Deal Approved

Apr 12 2012 | 10:30am ET

The only hedge fund to survive 2010's insider-trading raids has seen its settlement with the Securities and Exchange Commission finalized.

U.S. District Judge Harold Bear entered a final judgment on consent in the case last week, approving the deal Diamondback struck in January. The hedge fund agreed to pay more than $9 million in disgorgement, pre-judgment interest and fines.

The settlement also includes a non-prosecution agreement.

According to the SEC, Diamondback made more than $5 million on illegal trades made by portfolio manager Todd Newman. Newman, who was arrested and charged in January, was allegedly tipped by Diamondback analyst Jesse Tortora, who is cooperating with prosecutors.

Diamondback has not been accused of wrongdoing itself, and has said it has cooperated with the investigation.

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    One of the most unique charity benefits in the hedge fund industry, A Leg To Stand On's (ALTSO's) Hedge Fund Rocktoberfest - NYC, raised nearly $500,000 last Thursday thanks to the generous support of major sponsors and nearly 1,400 attendees from the Tri-State finance, business and hedge fund communities. Read more…