Wednesday, 25 November 2015
Last updated 1 hour ago
Nov 11 2008 | 9:23am ET
A former hedge fund compliance chief is accusing his old boss of favoring his interests of those of the fund’s investors in a wrongful termination lawsuit.
Joseph Sullivan says he was fired as chief compliance officer at New York-based Peconic Partners after questioning some of CEO William Harnisch’s trading. According to the lawsuit, filed in New York State Supreme Court, Harnisch engaged in front-running of Potash Corp. shares, selling his own stake in the fertilizer company for about $130 per share just days before unloading the fund’s stake for about $40 less per share.
Potash Corp. shares fell be more than half last month and closed yesterday at $81.63.
Sullivan’s lawyer, Alan Sklover, told the New York Post that the Securities and Exchange Commission had been notified of his client’s accusations against Harnisch.
For his part, Harnisch dismissed Sullivan’s claims as those of a “disgruntled employee,” according to the Post. He called the allegations “ridiculous.”
Peconic manages $1.5 billion in assets.
Oct 21 2015 | 10:41am ET
One of the most unique charity benefits in the hedge fund industry, A Leg To Stand On's (ALTSO's) Hedge Fund Rocktoberfest - NYC, raised nearly $500,000 last Thursday thanks to the generous support of major sponsors and nearly 1,400 attendees from the Tri-State finance, business and hedge fund communities. Read more…