Friday, 24 March 2017
Last updated 13 min ago
Nov 2 2009 | 1:27am ET
The Securities and Exchange Commission is continuing its crackdown on insider-trading, charging seven people, including a former hedge fund executive, in its latest complaint.
Ronald Yee, who until last year served as CFO of San Francisco-based ValueAct Capital, was hit with civil charges on Friday. But unlike the insider-trading case of Raj Rajaratnam, the Galleon Group founder, ValueAct was apparently not the beneficiary of Yee’s alleged malfeasance.
The $3.5 billion hedge fund has received a “no-action” letter from the SEC, indicating that the firm is not the target of the investigation. The firm said it has been cooperating with the regulator since its probe began last year, Reuters reports.
Yee’s lawyer said his client will fight the charges against him.
Yee left ValueAct last June, two months after being put on administrative leave.
According to the SEC, Yee told his brother-in-law, who worked at private equity firm Friedman Fleischer & Lowe, that ValueAct was planning to buy data management company Acxiom Corp. The brother-in-law, Chen Tang, then allegedly passed the information on to family and friends.
Yee himself did not trade on the information, but those who did allegedly earned some $6 million.