New York (HedgeCo.net) – The SEC has charged Robert Feinblatt, co-founder of hedge fund Trivium Capital Management LLC, and Trivium analyst Jeffrey Yokuty in its ongoing hedge-fund insider trading case, MarketWatch reports.
The SEC alleges insider dealing at Google, Polycoms, Hilton and Kronos Securities. The information included unreleased earnings and impending takeovers.
“Today’s action reveals disturbingly corrupt arrangements – faithless company executives who secretly pass corporate information to hedge fund managers willing to violate the law for profit,” SEC Enforcement director Robert Khuzami, said, according to MarketWatch.
The SEC says that Feinblatt and Yokuty helped the hedge fund managers, through insider trading, to gain $15 million in “illicit profits.”
Bob Nguyen, a former analyst at Primary Global Research, also admitted to helping hedge funds and other investors obtain confidential information. He pleaded Monday to conspiracy to commit wire fraud and securities fraud. He faces up to 25 years in prison.
The SEC also identified the Akamai executive who allegedly revealed company secrets to hedge fund traders. Kieran Taylor, Akamai’s former senior director of product marketing, is being accused of providing information to the now defunct hedge fund, Galleon Group LLC. Prosecutors allege that New Castle and Fortuna’s firm, S2 Capital LLC, each made a profit of $2.4 million by illegally trading on the Akamai inside information, while Galleon made $3.5 million.
MarketWatch reports that the SEC has so far charged 27 defendants, from 14 companies, with gains of roughly $69 million in “illlicit profits” in the hedge fund probe.
Alex Akesson
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