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

OmniQuest Capital: Why Funds of Hedge Funds Work

Aug 11 2016 | 4:47pm ET

There have been few sectors of the alternative investment universe under as much...

Lifestyle

Kiawah: Island Reversal

Aug 24 2016 | 9:59pm ET

Looking for real estate investments but the typical real estate fare isn’t cutting...

Guest Contributor

Old Hill Partners: Embrace Illiquidity

Aug 9 2016 | 2:39pm ET

The age-old financial concept that higher yields are the result of higher risk and...