Skip to main content

Former SAC Analyst Jonathan Hollander May Have Played Role In Blackstone Insider Trading Case

  • Author:
  • Updated:

Apparently it was SAC that brought the 411 to the government. Matthew Goldstein reports:

A year ago, federal regulators accused a former Blackstone Group investment banker, Ramesh Chakrapani, of tipping off a friend -- referred to as "tippee 1" in a Securities and Exchange Commission complaint -- about the 2006 buyout of the Albertsons supermarket chain.
Until now the identity of that friend has been a mystery. But Reuters has learned from three people familiar with the Chakrapani case that he is Jonathan Hollander, a 34-year-old former analyst at SAC. The sources also confirmed that the firm where the trading in question took place in January 2006 is CR Intrinsic Investors, an SAC subsidiary. In court papers, regulators contend that the Albertsons tip resulted in a series of trades that generated $91,000 in profits for the friend and his parents, as well as $3.5 million in trading profits for his firm.

Neither Hollander nor SAC have been charged with wrongdoing in any insider trading investigation.
SAC spokesman Jonathan Gasthalter says the hedge fund began looking into the allegations involving Hollander and the fund's trading in Albertsons stock after the SEC charged Chakrapani in January 2009. "After reviewing the initial complaint in this matter, SAC thoroughly investigated this former employee's trading in Albertsons and, on its own initiative, presented the findings to government authorities in February 2009," said Gasthalter. "We have cooperated fully with the government's investigation and will continue to do so."