Fired Hedge Fund Trader Accused Of Inflating Stock Prices

Apr 2 2008 | 4:30pm ET

A former hedge fund trader has been charged with market manipulation by Canadian regulators.

The Ontario Securities Commission said yesterday that Darren Delage engaged in certain trading practices to boost the price of Environmental Applied Research Technology House Earth (Canada) Corp. while he was trading for Polaris Securities’ energy hedge fund. The OSC alleges that Delage traded EAR shares just before the market close to boost its price, as well as entered into trades at higher prices than the most recent reported trades.

Delage “knew or ought reasonably to have known… would result in or contribute to a misleading appearance of trading activity in EAR shares, or an artificial prices for those shares,” OSC said in a statement.

The allegedly illicit trades took place during the summer of 2005, when Delage was executing most of the trades for the C$25 million Polaris Energy Offshore Master Fund. Polaris fired him in July of that year after an investigation into his trading practices.

OSC has scheduled a hearing for April 29.


In Depth

'Smart Beta' Funds In Regulators' Sights, Hedgies May Be Next

Mar 26 2015 | 11:11am ET

Funds that mimic strategies used by active managers for a fraction of the cost could...

Lifestyle

Study: Both Marriage and Divorce Lead to Negative Hedge Fund Performance

Mar 25 2015 | 6:51pm ET

Trouble at home leads to trouble in the market for fund managers, according to researchers...

Guest Contributor

The Life Settlement: Yield For The Investor And Cash For The Consumer

Mar 31 2015 | 6:48am ET

Investors are languishing in a yield-starved, low-interest rate environment, looking...

 

Sponsored Content

    Mar 9 2015 | 6:35am ET

    Kelly RodriquesKelly RodriquesAs more investors look to diversify, many are beginning to use retirement funds to invest in alternative assets such as private equity and real estate. Kelly Rodriques, CEO & President of PENSCO Trust Company, explains how companies can connect with those looking to use their retirement accounts in a different way. Read more…

Editor's Note