Thursday, 24 July 2014
Last updated 2 hours ago
Jun 11 2013 | 12:10pm ET
Whittier Trust Co. and one of its former hedge fund managers will pay $1.68 million to settle charges stemming from a major insider-trading case.
South Pasadena, Calif.-based Whittier will pay $1.52 million and Victor Dosti $159,000, the SEC said. According to the regulator, Dosti made trades in three technology companies based on tips he received from a subordinate, former Whittier fund manager Danny Kuo.
Kuo pleaded guilty last year to being a member of an insider-trading circle that included Level Global Investors co-founder Anthony Chiasson, former Diamondback Capital Management portfolio manager Todd Newman and former SAC Capital Advisors analyst Jon Horvath. SAC portfolio manager Michael Steinberg is also accused of trading on the ring's tips; he has yet to go to trial. Horvath pleaded guilty and Chiasson and Newman were convicted last year.
Neither Whittier nor Dosti admitted or denied any wrongdoing. Whittier said, "the conduct engaged in by two former employees is completely contrary to the core values of this organization." Dosti was never charged criminally in the case.
Jul 8 2014 | 10:48am ET
The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…