Tuesday, 3 May 2016
Last updated 17 hours ago
Oct 18 2013 | 11:16am ET
Quad Capital has sued its chief operating officer of nine days, accusing him of using the position to collect sensitive information before quickly moving on to another hedge fund.
Quad said Gregg Grimmelbein abruptly resigned on Oct. 3, taking confidential information about the firm to Tiger Ratan Capital. Among the information he allegedly collected were nonpublic financial statements, an investor pitchbook and a summary of its traders' performance.
According to Quad, Grimmelbein might use the latter to "lure star traders from Quad Capital to his new employer."
Quad alleges that Grimmelbein never intended to remain at the firm and was actively seeking a post at Tiger Ratan before taking the job. During his nine business days at the firm, he was rarely seen working and "kept to himself and mostly stayed in his office."
"When he did engage with other employees, he appeared to be fishing for information that, in hindsight, would prove valuable to his new firm after his resignation," Quad alleged. It added that Grimmelbein always "had one foot out the door," refused to sign standard employment forms and "exhibited other suspicious behavior."