Thursday, 31 July 2014
Last updated 11 hours ago
Oct 19 2009 | 1:13pm ET
The son of hedge fund manager Douglas Kass has settled charges that he made unauthorized trades while working at Circle T Partners.
Ethan Kass agreed to pay $50,000 to make the Securities and Exchange Commission allegations go away. The son of the Seabreeze Partners Management chief did not admit or deny the charges.
According to the SEC, Kass, then a processing clerk at the hedge fund run by the late Seth Tobias, made at least 24 unauthorized trades that cost Circle T $8.5 million. The younger Kass hid the trading by leaving it out of the hedge fund’s handwritten trade blotter and deleting or altering the entries from the firm’s portfolio management system. Kass was fired when the trades came to light.
Circle T later sued its prime broker, Banc of America Securities, alleging it should have caught the unauthorized trades. An NASD arbitration panel ruled in the hedge fund’s favor two-and-a-half years ago, but awarded less than $1 million in damages. Circle T had sought more than $30 million.
Jul 8 2014 | 10:48am ET
The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…