SEC Charges Hedge Fund Managers and Traders in $30 Million Expert Network Scheme
SEC Litigation Release 21844
February 8, 2011
The SEC announced the filing civil securities fraud charges against three hedge fund traders alleged to have illegally traded on confidential information obtained from employees of technology companies that were moonlighting as consultants for expert networks. The charges are the first brought by the SEC against traders in its current investigation of expert network activities (the SEC last week filed charges against certain consultants at expert networks).
Please contact any of the following Cadwalader attorneys if you have any questions about this item:
Steven Lofchie; steven.lofchie@cwt.com
Bradley Bondi; bradley.bondi@cwt.com
Jonathan Hoff; jonathan.hoff@cwt.com
Glen Barrentine; glen.barrentine@cwt.com
Cross References
CWT C&F Memo: Expert Networks and Insider-Trading Probes (December 21, 2010)
SEC Brings Expert Network Insider Trading Charges, SEC PR 2011-38 (February 3, 2011)
Exchange Act § 10(b)
Exchange Act Rule 10b-5
Securities Act § 17(a)