Dirty Details Of Alleged SAC Sex Scandal Emerge

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.”


In Depth

bfinance: Fees Falling Across Asset Classes, Yet Overall Investor Costs Still Climbing

May 16 2017 | 9:53pm ET

Despite unprecedented attention on fees, new research from investment consultancy...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Risk-Based Compliance: Why Oversight Of Outsourcing Is Critical

May 10 2017 | 7:02pm ET

Compliance is notoriously one of the trickiest middle office functions for funds...

 

From the current issue of