Whittier Settles Insider-Trading Allegations

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.


In Depth

Q&A: Quad Advisors’ Borish Is Looking For Real Traders, Not Index Huggers

Aug 20 2014 | 1:43pm ET

Peter Borish, who served as founding partner and director of research at Tudor Investment...

Lifestyle

Viking Manager In Rent Dispute

Aug 11 2014 | 4:14am ET

A hedge fund manager is demanding most of his money back from his former landlord...

Guest Contributor

Majority Of Inflows Go To Brand Name Hedge Funds

Aug 12 2014 | 9:00am ET

Since the market correction of 2008, a vast majority of hedge fund net asset flows...

 

Editor's Note

 

Futures Magazine

PREVIEW July/August 2014 Cover

Inside Futures' 500th Issue

The July/August 2014 issue is our largest in years—filled with the best trading strategies and stories from 43 years of being the primary publication for commodity, stock, options and forex traders.

The Alpha Pages

TAP July/August 2014 Cover

Real talk on alternative investments, business & finance

The Alpha Pages Editor's Note