Grand Jury Charges Another Hedgie With Insider Trading

Nov 6 2009 | 1:34pm ET

Another day, another asset manager indicted for insider trading.

Former portfolio manager for the Jefferies Paragon Fund Joseph Contorinis was indicted today by a grand jury on fraud charges involving an alleged $7.2 million insider-trading scheme.
 
Contorinis, who was arrested in February, was charged with utilizing and benefiting from non-public information about grocery chain Albertson’s Inc. His alleged co-conspirator, Nicos Stephanou, who served as an associate director of mergers and acquisitions at investment bank UBS, pled guilty in May to providing Contorinis with the non-public information.

From 2004 to June 2006, “Stephanou provided Contorinis, and others known and unknown, with UBS insider information,” states the indictment.

At UBS, Stephanou, who worked out of the firm’s London office, passed along tips about the possible Albertson’s acquisition to at least three people, including long-time friend Contorinis.  The two also once worked together at Credit Suisse First Boston.


In Depth

Humble in Hofstra...One Debate an Election Can Make

Sep 26 2016 | 10:20am ET

Tonight's U.S. Presidential debate, infamously coined the “Humbling in Hofstra...

Lifestyle

Vortic: Reimagining the Custom Wristwatch

Sep 27 2016 | 7:24pm ET

American watch manufacturer Vortic, which started out restoring antique pocket watch...

Guest Contributor

Malik: The Ever-Changing Middle Market and The Entering Class of 2016

Sep 2 2016 | 5:01pm ET

Deal sourcing and origination is only going to get more competitive given current...