Someone Other Than Steve Cohen Is Facing An Insider Trading Investigation

Nobody's trying to put Paul Singer in jail—yet—but the Elliott Management chief has had to disclose an insider-trading probe to his investors.
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Nobody's trying to put Paul Singer in jail—yet—but the Elliott Management chief has had to disclose an insider-trading probe to his investors.

Elliott Management faces an insider-trading inquiry in France stemming from its deal to sell its stake in a French highway network.

The Autorité des Marchés Financiers sent Elliott's U.K. unit a "letter of grievance" at the end of last month, warning that it was the subject of a probe. AMF is looking at Elliott's purchase of Autoroutes Paris-Rhin-Rhone shares between May and June of 2010, just before it and another money manager sold their 13.7% stake in APRR. The regulator said it believed the purchases inflated APRR's stock price and earned Elliott €2.75 million in ill-gotten gains.

The news is no doubt going over very well in Buenos Aires, where increasingly-unpopular President Cristina Fernández de Kirchner may redirect some of her energies from saber-rattling over some islands rich in sheep and existential meaning to casting a statue of François Hollande for the Plaza de Mayo.

France Eyes Alleged Elliott Insider Trading [FINalternatives]
Elliott's Unit Probed by French Regulator Over APRR Trade [Bloomberg]
Elliott reveals insider trading inquiry [FT]
Vitriol Over Falklands Resurfaces, as Do Old Arguments [NYT]

Related

Ex-SAC Analyst Spared Prison, Still Faces The Wrath of Cohen

Take note, insider-traders and those who might be accused of it in spite of their innocence: If you wear a wire and you don't have to go to jail. Wesley Wang, the former SAC analyst who helped convict one former boss and is probably helping to build cases against his bosses at SAC and Trellus Management, will get to keep doing so from the comfort of his northern California home.