Clay Capital, Imprisoned Ex-CIO Settle Lawsuit

Sep 4 2012 | 9:50am ET

Convicted hedge fund insider-trader James Turner has settled a Securities and Exchange Commission lawsuit stemming from his illicit scam.

The former Clay Capital Management chief investment officer and the hedge fund agreed to pay $2.1 million to end the regulator's case against them. The two were actually ordered to pay a combined $4.3 million in disgorgement and prejudgment interest, but all but more than half the total was waived due to financial condition.

Turner, who pleaded guilty to earning more than $2.5 million in illegal profits trading on tips from his brother-in-law and a college friend, and who was sentenced to one year in prison in April, also agreed to be barred from the industry.

Turner allegedly traded on confidential information about Autodesk Inc., Moldflow Corp. and Inc.

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