Alleged Tipster ID’d As Former SAC Analyst

Nov 16 2009 | 11:03pm ET

The former Balyasny Asset Management analyst linked to the Galleon Group insider-trading case has been identified as a former analyst at SAC Capital Advisors.

The identification of Mark Adams as an alleged tipster of Steven Fortuna, the co-founder of hedge fund S2 Capital Management who has been charged in the Galleon case, is the third former SAC employee linked to the probe. Only one of those three, Choo Beng Lee, has been accused of any wrongdoing, and Lee is cooperating with authorities. SAC itself has not been implicated in any wrongdoing, although Lee has told authorities that he traded illegally while working at the Greenwich, Conn.-based hedge fund giant.

According to The Wall Street Journal, Adams passed non-public information about EMC Corp. to Fortuna, allegedly a member of the insider-trading circle that also allegedly included Galleon founder Raj Rajaratnam. Adams worked at EMC before joining SAC in July 2005. He left the hedge fund in December 2007, and began providing tips on EMC the following year, the Journal reports.

Another former SAC employee, trader Richard Grodin, has received a subpoena in the case.

Adams left Balyasny several weeks ago after the hedge fund closed its Boston office. Balyasny has not been charged with any wrongdoing.


In Depth

Virtu Celebrates Another Year Without a Single Day of Losses

Feb 26 2015 | 9:05am ET

High-frequency trading firm Virtu Financial Inc. reported another year without a...

Lifestyle

Hedge Fund Manager Out as Minnesota Wild Minority Owner

Feb 25 2015 | 2:45pm ET

New York hedge fund manager Philip Falcone is no longer a minority owner of the...

Guest Contributor

Risk: How To Get In Front Of The Problem

Feb 26 2015 | 9:53am ET

In considering the topic of risk in the hedge fund world, specifically, the oversight...

 

Editor's Note