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

Q&A: Open Season For Closed-End Funds

Aug 29 2014 | 10:00am ET

When Maury Fertig and Bob Huffman, former Salomon Brothers coworkers, launched...

Lifestyle

Och Funds Women In Finance Initiative At U-M

Aug 28 2014 | 3:01pm ET

Och-Ziff Capital founder Daniel Och and his wife have made a "generous donation"...

Guest Contributor

Looking Ahead: What’s In Store For Managed Futures?

Aug 22 2014 | 12:52pm ET

The last five years were phenomenal for investors in equity indices. Will the next...

 

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    Aug 25 2014 | 11:21am ET

    As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…

 

Futures Magazine

July/August 2014 Cover

The time was right

Commodities/Futures magazine launched at the precipice of a revolution in the futures industry—really a revolution in the idea of risk management—that would move it from a small niche industry to ...

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.