Looking for a way to keep warm during the cold weather or rather alleviate your cold while under the weather?
Saturday, 21 January 2017
Last updated 7 hours ago
Jul 25 2013 | 10:36am ET
Today's indictment of SAC Capital Advisors on criminal insider-trading charges may well be a death sentence for that firm, but it must also be uneasy reading for another hedge fund giant.
The charges describe former SAC trader Richard Lee—who pleaded guilty to fraud charges this week and is cooperating with authorities—as a former member of the "insider-trading group" at a firm identified as "Hedge Fund A." That firm is Citadel Investment Group, Reuters reports.
Lee worked at Citadel from 2006 through 2008, the year before he joined SAC. He was fired by Chicago-based Citadel for a violation of the firm's policies, a Citadel spokeswoman told Reuters, but his termination was "unrelated to anything about insider trading."
According to the indictment, SAC hired Lee—who is unrelated to Richard Choo-Beng Lee, another former SAC trader who pleaded guilty to insider-trading as part of the Galleon Group case—despite being warned that he "was known for being part of Hedge Fund A's 'insider trading group.'" Lee pleaded guilty to trading on insider information about several stocks, including Yahoo!
Citadel has not been accused of any wrongdoing.
Lee's group at Citadel, principal strategies, was closed at the end of 2008.
Prior to joining Citadel, Lee worked at Farallon Capital Management from 2003 to 2005. He worked at SAC from 2009 through 2011 and again from 2012 until March.