Saturday, 26 July 2014
Last updated 11 hours ago
Mar 14 2014 | 11:25am ET
SAC Capital Advisors wants fervently to put its insider-trading scandal behind it. But as the firm prepares to change its name and seek a judge’s approval for its $1.8 billion criminal settlement, another former employee has been rapped for the crime.
Ronald Dennis, a former analyst at SAC’s CR Intrinsic division, has settled Securities and Exchange Commission insider-trading allegations, the agency said yesterday. Dennis will pay more than $200,000 and has agreed to be barred from the securities industry.
According to the SEC’s complaint, Dennis, who worked at SAC from 2008 through 2010, illegally traded shares of Dell Inc. and Foundry Networks. The moves allegedly earned SAC some $3.8 million in illicit profits.
Dennis allegedly got confidential information about Dell from Jesse Tortora, a former analyst at Diamondback Capital Management. Tortora was also a Dell source for former SAC portfolio manager Michael Steinberg, who was convicted last month of insider-trading.
In one instance, after one of Tortora’s tips became public, he instant-messaged Dennis, “your welcome.” Dennis responded, “you da man!!! I owe you.”
Dennis also allegedly got illicit information from Matthew Teeple, a former analyst at Artis Capital Management. According to the SEC, Teeple, who is facing criminal charges, tipped Dennis about Foundry.
Unlike Steinberg and Teeple, Dennis has not been charged criminally. He did not admit or deny wrongdoing as part of the settlement.
“Like several others before him at SAC Capital and its affiliates, Dennis violated the insider-trading laws when he exploited confidential information about public companies,” the SEC’s Sanjay Wadhwa said. “His actions have cost him the privilege of working in the hedge fund industry ever again.”
Dennis is the 10th former SAC employee to face insider-trading allegations.
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…