Ex-SAC Analyst Settles Insider-Trading Allegations

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.


In Depth

Kettera Q&A: The Advantages of Alternative Investment Platforms

Oct 28 2016 | 5:52pm ET

The past several years have seen a distinct push towards easier and cheaper access...

Lifestyle

Midtown's Plaza District Fades As Manhattan Office Landscape Shifts

Nov 22 2016 | 6:32pm ET

Lower leasing costs, more efficient office space and the hope of projecting an image...

Guest Contributor

Nowhere to Hide: Why the Future of Asset Management Depends on Innovation

Nov 15 2016 | 6:55pm ET

Information technology has reshaped the asset management industry’s periphery,...

 

From the current issue of

Chicago-based independent futures brokerage and clearing firm R.J. O’Brien & Associates (RJO) has hired industry veteran Daniel Staniford as Executive Director, responsible for the firm’s institutional business development in New York and London.

AVAILABLE NOW at BARNES & NOBLE

NEWSTAND LOCATOR