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.


In Depth

Q&A: Decathlon Capital On Revenue-Based Alternative Lending

Oct 30 2017 | 3:49pm ET

The explosion in private credit activity since the end of the financial crisis is...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

CAIS: How Technology is Disrupting the Alternative Investment Industry

Nov 7 2017 | 5:35pm ET

If there’s one thing that alternative investment professionals can agree on, it...