Thursday, 31 July 2014
Last updated 18 hours ago
Oct 11 2007 | 7:41am ET
In the same week that former hedge fund manager Albert Hsu pleaded guilty to trying to get his ex-mistress raped, shocking details of another hedge fund sex scandal have emerged.
The case involves hedge fund giant SAC Capital, the Stamford, Conn., firm run by Steven Cohen. In a sexual harassment lawsuit, a former junior trader at the firm alleges he had sexual relations with Ping Jiang, a managing director and top fund manager at the firm, CNBC reports.
In addition, Andrew Tong, who was let go by SAC last April, alleges that Jiang instructed him to take female hormones to facilitate a more "effeminate" trading method. CNBC says that Jiang complied, using black-market hormones, which then caused emotional and physical distress and, unsurprisingly, unwanted sexual problems at a time that Tong and his wife were attempting to have a child. He also claimed that the hormones led him to begin wearing women’s clothes.
The sealed lawsuit, in New York state court, has been sent into arbitration.
Both SAC and Jiang have denied the charges. In a statement, the firm said, “SAC conducted a thorough investigation and found these scurrilous accusations to be false. We will vigorously defend ourselves and are confident that these claims will be swiftly rejected in arbitration.”
Jul 8 2014 | 10:48am ET
The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…