SAC Socked With New Allegations

Oct 18 2007 | 2:18pm ET

For a hedge fund as obsessed with secrecy as SAC Capital, two weeks of sex-scandal headlines, reporters milling around and federal agencies poking around cannot have been much fun. But things at the Stamford, Conn.-based firm could get worse before they get better.

The federal Equal Employment Opportunity Commission is set to decide in the next few weeks whether to join ex-SAC junior trader Andrew Tong’s sexual harassment lawsuit against the firm and his former boss, Ping Jiang. Tong alleges that he was sexually assaulted at work, and that Jiang ordered him to take estrogen pills and wear women’s clothing in an effort to curb his aggressive trading habits. Tong, who is married, also alleges that he and Jiang had a sexual relationship.

SAC and Jiang have angrily denied the charges. But CNBC reports that the EEOC is ramping up its probe of SAC, taking the rare step of conducting on site interviews with Jiang and his team at SAC’s New York office. CNBC anchor Charles Gasparino reports that the federal agency has spoken to most, if not all, of Jiang’s trading staff.

Worse still for SAC, the EEOC may expand its probe beyond Tong’s claims, prompted by a newspaper quote from a SAC employee.

“If taking female hormones actually helped you do your job, they would simply hire women here,” the unidentified employee at SAC’s Stamford headquarters told the New York Post. “But they don't. They don't think women are aggressive enough.”

Should the probe expand to SAC’s alleged sexism in hiring, SAC brass is unlikely to be especially pleased. Another employee told the Post last week that firm leaders were “livid” about Tong’s allegations appearing in the media and conducted a “witch hunt” to find the leaker.

Worst of all, CNBC reports, the U.S. Attorney for the Eastern District of New York has interviewed Tong about SAC’s trading activity. The hedge fund has been sued over allegedly trading on tips about negative analyst reports.


In Depth

Why Ponzi Schemes Work: An In-Depth Look At The Allen Stanford Fraud

Dec 21 2014 | 10:30am ET

Texan Allen Stanford first appeared on the radars of financial regulators in 1997...

Lifestyle

Hedgie Funds US Squash Program

Dec 24 2014 | 8:46am ET

Squash, anyone?

Guest Contributor

EidoSearch’s Top Three Market Projections For 2015

Dec 23 2014 | 4:03am ET

It is that time of year again when prognosticators make their big market calls for...

 

Sponsored Content

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

December 2014 Cover

Futures 2014 person of the year

Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.