New York (HedgeCo.net) – The SEC has brought charges against four hedge fund managers who are accused of trading insider information they obtained while moonlighting as network consultants, Risk.net reports.
“Samir Barai, Jason Pflaum, Noah Freeman and Donald Longeuil will be added to an original complaint filed by the SEC on February 3, which targeted employees of technology firms illegally leaking information to investors in exchange for consulting fees.” Risk said.
The men “sought to illegally trade today on what others would not learn until tomorrow”. Robert Khuzami, director of the SEC’s division of enforcemen, said in a statement. The hedge fund managers are alleged to have made $30 million with their insider knowledge of tech firms AMD, Seagate Technology, Western Digital, Fairchild Semiconductor and Marvell.
“Freeman and Pflaum have already pleaded guilty to charges of conspiracy to commit securities fraud and securities fraud. Barai and Longeuil also face charges of obstruction of justice, after they allegedly attempted to destroy evidence of their dealings having read of an FBI crackdown on insider trading,” the news source reported.
The alleged “attempts to destroy evidence” include shredding documents, destroying computers and scattering the evidence in separate dumpsters and garbage trucks. The men face between 25 to 45 years behind bars.
Alex Akesson
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