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SEC Charges Hedge Fund Manager, Analyst, Tech Exec, IR Chick In Galleon-Related Case

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$$$Swiss banker who used WikiLeaks faces trial [BW]

Robert Khuzami can't even look at you people (who include Trivium Capital founder and SAC alum Robert Feinblatt).

The SEC alleges that Robert Feinblatt — a co-founder and principal of New York-based hedge fund investment adviser Trivium Capital Management LLC — and Trivium analyst Jeffrey Yokuty engaged in insider trading in the securities of Polycom, Hilton, Google and Kronos. The SEC further alleges that Polycom senior executive Sunil Bhalla and Shammara Hussain, an employee at investor relations consulting firm Market Street Partners that did work for Google, tipped the inside information that enabled the insider trading by Feinblatt and Yokuty on behalf of Trivium's hedge funds for illicit profits of more than $15 million.

"Today's action reveals disturbingly corrupt arrangements — faithless company executives who secretly pass corporate information to hedge fund managers willing to violate the law for profit," said Robert Khuzami, Director of the SEC's Division of Enforcement. "Market participants need to understand that by engaging in such behavior they invite SEC scrutiny, and we will uncover their conduct and take aggressive action."

Update: Reuters's Matthew Goldstein notes a Stamford connection: "Feinblatt, who shut his Trivium Capital Management firm in late 2008, was charged with getting confidential tips from Galleon cooperating defendant Roomy Khan. Khan had worked as a consultant to Feinblatt, who started his fund after leaving SAC Capital in 2002."

SEC Charges New York Hedge Fund and Wall Street Professionals in Galleon-Related Enforcement Action [SEC]


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