Skip to main content

If Your Hedge Fund's Name Appears Here, Federal Officials May Be Taking A Peek At Your Trades

  • Author:
  • Updated:

FINalternatives reports prosecutors have offered a few more details re: which hedge they're taking a looksee at, vis-a-vis alleged insider trading by some employees. If you haven't been keeping up with the news much lately or unplugged your phone and computer a few days ago, take a gander.

One fund that requires no further speculation is Citigroup's Tribeca Global Management. According to the Securities and Exchange Commission's lawsuit, the defunct Citi hedge fund is "Hedge Fund A" in the complaint against hedge fund manager Samir Barai. And it allegedly earned more than $450,000 in illicit profits in 2006 and 2007 from the insider-trading scandal. Barai worked at Tribeca in those years before leaving to found Barai Capital Management. Citigroup said it is cooperating with the investigation.

As for the other hedge funds in the complaints' alphabet (and number) soup, "Hedge Fund B" in the criminal complaint is Barai Capital Management, "Hedge Fund C" is Empire Capital, where Longueuil worked from 2004 through 2008, "Hedge Fund D" is SAC Capital Advisors or SAC's CR Intrinsic unit, where Longueuil worked after leaving Empire, "Hedge Fund E" is Sonar Capital Management, where Noah Freeman, who has pleaded guilty in the case, worked before joining SAC, and "Hedge Fund F" is SAC.

In the Securities and Exchange Commission's civil case, "Hedge Fund #5" is Sonar, "Hedge Fund #6" is Empire and "Hedge Fund #7" is SAC. Hedge funds two through four remain unidentified; no one at those firms has been charged with any wrongdoing, and they are included in the complaint as recipients of information from the expert-network consultants arrested last year. Neither Empire nor SAC nor Sonar have been accused of any wrongdoing.

Feds Release More Details On Hedge Fund Insider-Trading Case [FINalternatives]