{"id":4328,"date":"2006-04-27T00:00:00","date_gmt":"2006-04-27T00:00:00","guid":{"rendered":""},"modified":"-0001-11-30T00:00:00","modified_gmt":"-0001-11-30T04:00:00","slug":"hedge-fund-insider-trading-at-sunsource","status":"publish","type":"post","link":"https:\/\/hedgeco.net\/news\/04\/2006\/hedge-fund-insider-trading-at-sunsource.html","title":{"rendered":"Hedge Fund Insider Trading at SunSource"},"content":{"rendered":"<div class=\"writeboardbody\">  WEST PALM BEACH, FL (HEDGECO.NET) &#8211; The Securities and Exchange Commission filed suit on Tuesday against hedge fund manager Nelson Obus. Mr Obus manages about $400 million as founder and managing  partner of Wynnefield Capital Inc.  <\/p>\n<p>    The lawsuit filed in U.S. District Court in Manhattan claims his funds made $1.34 million after profiting from inside information provided by Peter Black, a <span class=\"caps\">GE<\/span> Capital    analyst. Black received the tip from Thomas Strickland, 33, who was an employee of <span class=\"caps\">GE<\/span> Capital and had access to confidential documents regarding the merger.  <\/p>\n<p>    The suit claims that with prior knowledge of the merger of Allied Capital Corp and SunSource Inc., Obus directed the purchase of 287,200 shares of SunSource stock at $4.75 on June 8, 2001,    according to the <span class=\"caps\">SEC<\/span> complaint.  <\/p>\n<p>    In a press release yesterday to investors, Obus and Wynnefield denied the charges and called the allegations \u00c3\u00a2\u00e2\u201a\u00ac\u00c5\u201cabsolutely baseless.\u00c3\u00a2\u00e2\u201a\u00ac\u00c2\u009d&nbsp; The letter noted Wynnefield had invested in SunSource    prior to the deal and had been working with them for over ten years.  <\/p>\n<p>    \u00c3\u00a2\u00e2\u201a\u00ac\u00c5\u201cThis smacks of heavy-handed regulatory over-reaching of the type that\u00c3\u00a2\u00e2\u201a\u00ac\u00e2\u201e\u00a2s been so much in the news lately,\u00c3\u00a2\u00e2\u201a\u00ac\u00c2\u009d the letter said.  <\/p>\n<p>    \u00c3\u00a2\u00e2\u201a\u00ac\u00c5\u201cThe allegations are totally baseless and we will prove that in court,\u00c3\u00a2\u00e2\u201a\u00ac\u00c2\u009d said Joel Cohen in an interview with Reuters. Mr Cohen is an attorney in New York representing Obus and the Wynnefield    funds.  <\/p>\n<p>    The <span class=\"caps\">SEC<\/span> is seeking reimbursement of the illicit gains plus civil penalties. It also seeks to prohibit Obus and Black from serving as officers or directors of public    companies.  <\/p>\n<p>    Alex Akesson<br \/>    Contributing Writer<br \/>    HedgeCo.Net<br \/>    Email: Editor@hedgeco.net  <\/p>\n<p>    HedgeCo.Net is a premier hedge fund database and community for qualified and accredited investors only. Membership on www.hedgeco.net is FREE and EASY. We also offer FREE LISTINGS for Hedge    Funds!  <\/p>\n<p>    <strong>Be sure to check out our sister sites. <a href=\"http:\/\/www.hedgefundlounge.com\/\">www.hedgefundlounge.com<\/a>, <a href=\"http:\/\/www.hedgefundtools.com\/\">www.hedgefundtools.com,<\/a><\/strong>    and <a href=\"http:\/\/www.hedgefundemployment.com\/\"><strong>www.hedgefundemployment.com.<\/strong><\/a>  <\/p>\n<p>    &nbsp;  <\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>WEST PALM BEACH, FL (HEDGECO.NET) &#8211; The Securities and Exchange Commission filed suit on Tuesday against hedge fund manager Nelson Obus. Mr Obus manages about $400 million as founder and managing partner of Wynnefield Capital Inc. The lawsuit filed in [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-4328","post","type-post","status-publish","format-standard","hentry","category-hedgeco-news"],"_links":{"self":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/4328","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\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/comments?post=4328"}],"version-history":[{"count":0,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/4328\/revisions"}],"wp:attachment":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/media?parent=4328"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/categories?post=4328"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/tags?post=4328"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}