Ex-Vicis Partner Fined Over Undisclosed Principal Transaction

Sep 19 2013 | 12:35am ET

A former partner at the defunct Vicis Capital has settled charges that he profited from the purchase by the hedge fund of a friend's investments.

Shadron Stastney required his friend, who was not identified, to divest himself of $7.7 million worth of securities when he joined New York-based Vicis, because they overlapped with the firm's own investments. According to the Securities and Exchange Commission, Stastney authorized Vicis' purchase of the securities—without telling his partners that he had a financial stake in some of those securities.

The SEC alleges that Stastney earned more than $2 million from the sale.

As part of the settlement, Stastney—who did not admit or deny wrongdoing—will pay nearly $2.9 million, and is barred from the securities industry for at least a year-and-a-half.

Vicis closed its doors in 2010 amidst poor performance, heavy redemptions and a Federal Bureau of Investigation probe.


In Depth

Q&A: Neil Azous Talks Global Macro Investing

Nov 24 2014 | 12:41pm ET

Neil Azous is the founder and managing member of Rareview Macro, an advisory firm...

Lifestyle

Scene Last Night: Clinton, Schwarzman, Corzine, Neidich, Diamond

Nov 25 2014 | 5:52pm ET

Steve Schwarzman had a granddaughter yesterday morning. Last night he sat one table...

Guest Contributor

Why The Big Money Is Going To Europe

Nov 14 2014 | 6:03am ET

Peer-to-peer lending was invented with the individual investor in mind. But despite...

 

Sponsored Content

    For Hedge Funds, Mastering Data Is Key To Success

    Nov 4 2014 | 9:45am ET

    Data management is important to every business, but for hedge funds, it is critical. FINalternatives recently asked Peter Sanchez, CEO of Northern Trust Hedge Fund Services, how fund managers can deal with the demands of managing data while at the same time remain transparent and abide by operational best practices. Read more…

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

November 2014 Cover

Building a better market

Reg NMS created a huge bifurcation in equity markets and while much of what has followed has been positive, in terms of lower fees and greater liquidity, many traders would like to see the market come...

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.