New York (HedgeCo.Net) – Ronald Dennis, who worked at Steven A. Cohen’s SAC affiliated CR Intrinsic Investors has settled with the SEC on insider trading charges, Reuters reports.
Ronald Dennis agreed to be barred from the securities industry and pay more than $200,000 to settle the SEC’s charges. The trader enabled hedge funds managed by CR Intrinsic and SAC Capital to generate approximately $3.2 million in profits and avoided losses in Dell stock, according to the SEC.
“Like several others before him at SAC Capital and its affiliates, Dennis violated the insider trading laws when he exploited confidential information about public companies, in this case Dell and Foundry, to unjustly benefit the firms and enrich himself,” said Sanjay Wadhwa, senior associate director of the SEC’s New York Regional Office. “His actions have cost him the privilege of working in the hedge fund industry ever again.”
The SEC alleges that Ronald N. Dennis got illegal tips from two friends who were fellow hedge fund analysts. They provided him confidential details about impending announcements at Dell Inc. and Foundry Networks. Armed with inside information, Dennis prompted illegal trades in Dell and Foundry stock and enabled hedge funds managed by SAC Capital and affiliate CR Intrinsic Investors to generate illegal profits and avoid significant losses.
Alex Akesson
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