In May, we told you about the allegations of sartorial behavior modification at SAC Capital Management. Former SAC employee Andrew Z. Tong had accused current SAC employee (and top trader, and Yoko Ono neighbor) Ping Jiang of sexual harassment that included enrollment in a “top secret training program,” and the elimination of Tong’s alleged personality flaws by requiring him to wear “certain kinds of clothes to work.” No one got back to us regarding whether or not leather was involved and we pretty much forgot about the whole thing, the night terrors involving Stevie Cohen, spandex and warm-up suits notwithstanding. Today, Charlie Gasparino, because he tracks this sort of thing, brings us an update.
-- Apparently, one aspect of the “program,” guided by Jiang’s belief that traders are too aggressive and should be more effeminate, had Tong taking female hormones, which he bought on the black market.
-- According to Tong, as a result of the hormones, he suffered emotional and physical distress, and started wearing women’s clothes. He also said that he was unable to perform sexually with his wife, with whom he was trying to have a baby.
-- Other forms of harassment allegedly included “sexual relations between two men.”
Not surprisingly, SAC and Jiang have denied the charges, and said in a statement:
”SAC conducted a thorough investigation and found these scurrilous accusations to be false. We will vigorously defend ourselves and are confident that these claims will be swiftly rejected in arbitration.”
Sources at the firm told Gasparino that Tong was fired for cause in April 2006, though whether or not the “cause” was his inability to even feign enthusiasm at being forced to wear a dress is unclear. (We know—not funny, just sick. It’s a defense mechanism sometimes employed in uncomfortable situations so back off you don't know my life!)
On a lighter note, this whole thing makes the rumors about Cohen leaving the dismembered body of a (former) analyst floating in tank of formaldehyde on the Stamford trading desk, "as a motivational technique," not seem so bad, eh?
Earlier: Sartorial Behavior Modification at S.A.C.?
Tong v S.A.C. Capital Mgt., LLC
SAC Capital Harassment Suit [CNBC]