Reuters – A former Manhattan hedge fund manager who pleaded not guilty to insider trading charges last week must defend herself against fraud and other claims in a civil lawsuit, a federal judge hasruled.
Hilary Shane, 39, who was a hedge fund manager at First New York Securities and now lives in Jupiter, Florida, appeared in U.S. District Court in Manhattan on Sept. 25 to answer criminal charges that she sold short shares of Compudyne Corp. ahead of an unregistered offering in October 2001.
Compudyne filed a civil lawsuit against Shane and her firm in 2005 alleging fraud and other charges. Shane and her firm had sought to have the lawsuit dismissed.
But U.S. District Judge Robert Sweet in Manhattan wrote in a 51-page ruling dated Sept. 29, that Shane must defend herself against the fraud and breach of contract claims alleged in the lawsuit. He dismissed others, including one charging “unjust enrichment.”
Her lawyer could not immediately be reached for comment on Sweet’s decision.
