23.01.2012
By Simon Miller
Diamondback Capital Management has agreed to pay more than $9m ($5.8m) to settle insider-trading charges, the Securities and Exchange Commission (SEC) announced today (23.01.2012).
Last week, the SEC filed insider-trading charges against Diamondback, a second hedge fund advisory firm, and seven individuals, including a former Diamondback analyst and former Diamondback portfolio manager.
Subject to the approval of Judge Paul Gardephe of the US District Court for the Southern District of New York, Diamondback will give up more than $6m which it allegedly earned through the dealings and pay a $3m civil penalty.
The Stamford, Connecticut.-based hedge fund adviser also has submitted a statement of facts to the SEC and federal prosecutors, and entered into a non-prosecution agreement with the US Attorney’s Office for the Southern District of New York.
In addition, Diamondback consented to a judgment that permanently enjoins it from future violations of federal anti-fraud laws. The proposed settlement would resolve charges of insider trading by Diamondback in shares of Dell and Nvidia in 2008 and 2009.
“We are pleased to have reached a prompt resolution of the charges against Diamondback,” said George S. Canellos, director of the SEC’s New York Regional Office. “If approved by the court, we believe that the proposed settlement appropriately sanctions the misconduct while giving due credit to Diamondback for its substantial assistance in the government’s investigation and the pending actions against former employees and their co-defendants.”
Other stories you may find of interest:
A very British Complex
Greater complexity leads to greater risks for banks according to Professor Simon Collinson, Warwick Business School and the Simplicity Partnership
Journey’s end for Solvency II?
Solvency II, the long-mooted new capital adequacy regime for Europe’s insurers, is nearing implementation. Graham Buck reviews its progress
Impacting on investment
With emerging markets looking for investment, Simon Miller looks at the rise of impact investment and what risks entails in this socially aware vehicle
