Hedge Fund Manager Charged With Insider Trading

Feb 9 2009 | 1:10am ET

A former hedge fund manager has been charged for his role in an alleged insider trading ring.

Joseph Contorinis, a former Jefferies Asset Management portfolio manager, and two others are accused of leaking confidential information about the acquisition in 2006 of the supermarket chain Albertsons, allowing family and friends to make more than $11.6 million in illicit profits.

Contorinis himself allegedly used the information to make $7.2 million for his hedge fund.

According to the complaint, filed last week in Manhattan, one of Contorinis’ co-conspirators, Nicos Achilleo Stephanou, worked on the UBS team that advised private equity giant Cerberus on the Albertsons deal and passed the insider information on.

Four other relatives and friends of the three accused ringleaders are also facing charges.

Jefferies said Contorinis, who was arrested Thursday, left the firm a year ago. Jefferies was not mentioned in the criminal complaint against their former employee.

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