Tuesday, 3 May 2016
Last updated 21 min ago
May 1 2013 | 12:55am ET
Gerson Lehrman Group, an expert-networking firm that has found itself involved in two hedge fund insider-trading cases, has hired a former Securities and Exchange Commission lawyer to lead its compliance effort.
Michael King was named chief compliance counsel at the firm. King joins from the SEC's Fort Worth, Texas, office, where he was a lawyer in the enforcement division.
"As the world's leading platform for expertise, we understand how important it is for decision-makers to tap expert insights and also the need for a rigorous and robust compliance framework," Gerson Lehrman general counsel Laurence Herman said.
Gerson Lehrman, the largest expert-networking firm in the U.S., has not been accused of any wrongdoing in the recent crackdown on insider-trading. But it has been identified as the firm that connected former SAC Capital Advisors portfolio Mathew Martoma with the doctor who allegedly passed him tips about Alzheimer's drug trials. Martoma has pleaded not guilty in that case, which prosecutors have called the most lucrative insider-trading scheme in history, while the doctor, Sidney Gilman, has pleaded guilty and is cooperating with authorities.
Gerson Lehrman was also linked to Marvell Technology Group's Menucher Menuchehry, who has not been accused of any wrongdoing but who was questioned by the Federal Bureau of Investigation about his contacts with Diamondback Capital Management, one of four hedge funds raided in 2010 as part of the insider-trading probe.