{"id":38486,"date":"2013-10-07T05:52:46","date_gmt":"2013-10-07T09:52:46","guid":{"rendered":"http:\/\/www.hedgeco.net\/news\/?p=38486"},"modified":"2013-10-08T18:18:15","modified_gmt":"2013-10-08T22:18:15","slug":"30-million-fine-for-leaking-to-hedge-funds","status":"publish","type":"post","link":"https:\/\/hedgeco.net\/news\/10\/2013\/30-million-fine-for-leaking-to-hedge-funds.html","title":{"rendered":"Citi: $30 Million Fine for Alledgedly Leaking to Hedge Funds"},"content":{"rendered":"<p><a href=\"http:\/\/www.hedgeco.net\/news\/wp-content\/uploads\/2011\/03\/insider_trading_091204_mn.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignright size-full wp-image-21586\" alt=\"Galleon Hedge Fund Insider Trading Rajaratnam\" src=\"http:\/\/www.hedgeco.net\/news\/wp-content\/uploads\/2011\/03\/insider_trading_091204_mn.jpg\" width=\"340\" height=\"260\" srcset=\"https:\/\/hedgeco.net\/news\/wp-content\/uploads\/2011\/03\/insider_trading_091204_mn.jpg 340w, https:\/\/hedgeco.net\/news\/wp-content\/uploads\/2011\/03\/insider_trading_091204_mn-300x229.jpg 300w\" sizes=\"auto, (max-width: 340px) 100vw, 340px\" \/><\/a>New York (HedgeCo.Net) &#8211; \u00a0NY prosecutors have extracted a $30 million\u00a0penalty from\u00a0Citigroup for maintaining an alleged illegal message thoroughfare with insider traders.<\/p>\n<p>\u201cWe are pleased to have this matter resolved. We take our regulatory compliance requirements very seriously and train all of our employees about these obligations.\u00a0 We are also constantly working to improve, manage and monitor the compliance and controls process.\u201d Citi said.<\/p>\n<p>Citadel, GLG Partners, and SAC Capital received inside information according to\u00a0a recently revealed\u00a0settlement. A\u00a0Citigroup analyst in Taiwan named Kevin Chang offered research, which pointed to lower shipments of the iPhone 5, to a select group of clients one day before the report was available to the rest of the market, Bloomberg reports.<\/p>\n<ul>\n<li>\n<blockquote><p><em>Reuters reports:<\/em> \u201cHey Kevin, are you picking up any order cuts to iPhone?\u201d<em> asked one SAC Capital trader on Dec. 12, 2012,\u00a0according to\u00a0<a href=\"http:\/\/www.sec.state.ma.us\/sct\/current\/sctcitigroup\/citigroup-consent-order.pdf\">the settlement<\/a>. The same morning, an employee of SAC\u2019s CR Intrinsic division also e-mailed Chang asking for his thoughts on another analyst\u2019s newly released negative report. Several other SAC employees logged similar inquiries, including:<\/em> \u201cSAC request for conference call today URGENT.\u201d <em>Another read:<\/em> \u201ccan u send me everything u have on the entire iphone 4\/4s\/5 supply chain?\u201d <em>\u00a0Citadel and GLG also chimed in. Chang apparently succumbed to the pressure and sent a preview of his unpublished research to the anxious\u00a0Apple\u00a0traders.&#8221;<\/em><\/p><\/blockquote>\n<p><em><\/em>Citigroup suffered huge losses during the global financial crisis of 2008 and was rescued in November 2008 in a massive stimulus package by the U.S. government. On February 27, 2009, Citigroup announced that the United States government would take a 36% equity stake in the company by converting $25 billion in emergency aid into common stock with a US Treasury credit line of $45 billion to prevent the bankruptcy of the largest bank in the world at the time. The government guaranteed losses on more than $300 billion troubled assets and injected $20 billion immediately into the company.<\/li>\n<\/ul>\n<p>Alex Akesson<br \/>\nEditor for\u00a0<a title=\"hedge funds\" href=\"http:\/\/www.hedgeco.net\">HedgeCo.net<\/a><br \/>\n<a href=\"mailto:alex@hedgeco.net\">alex@hedgeco.net<\/a><br \/>\n<a title=\"hedge fund\" href=\"http:\/\/www.hedgeco.net\">HedgeCo.Net<\/a>\u00a0is a premier\u00a0<a title=\"hedge fund database\" href=\"http:\/\/www.hedgeco.net\">hedge fund database<\/a>\u00a0and community for qualified and accredited investors only. Membership in\u00a0<a title=\"hedge fund\" href=\"http:\/\/www.hedgeco.net\">HedgeCo.net<\/a>\u00a0is FREE and EASY. We also offer FREE LISTINGS for\u00a0<a title=\"hedge fund\" href=\"http:\/\/www.hedgeco.net\">Hedge Funds<\/a>!<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>New York (HedgeCo.Net) &#8211; \u00a0NY prosecutors have extracted a $30 million\u00a0penalty from\u00a0Citigroup for maintaining an alleged illegal message thoroughfare with insider traders. \u201cWe are pleased to have this matter resolved. We take our regulatory compliance requirements very seriously and train [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-38486","post","type-post","status-publish","format-standard","hentry","category-hedgeco-news"],"_links":{"self":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/38486","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/comments?post=38486"}],"version-history":[{"count":7,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/38486\/revisions"}],"predecessor-version":[{"id":38526,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/38486\/revisions\/38526"}],"wp:attachment":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/media?parent=38486"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/categories?post=38486"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/tags?post=38486"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}