Hedge Fund Managers Insider Trading
Three Managers & Analyst Charged with Insider Trading
Law enforcement has been scrutinizing the relationship between hedge funds and so-called expert networks—companies that pair investment firms with public company employees, who offer insight into their companies and industries. The problem, according to prosecutors, is that these conversations sometimes include material nonpublic information.
One of the three hedge fund managers due to be charged, WSJ reports, is Samir Barai, who founded New York-based Barai Capital Management in 2008 after leaving Citigroup’s hedge-fund unit. He has evidently been charged with obstruction of justice.
Charges are also expected against Jason Pflaum, 38, a technology analyst; Donald Longueuil, 35, formerly of CR Intrinsic Investors LLC, a division of hedge fund SAC Capital Advisors; and Noah Freeman, who worked at SAC Capital’s Boston office from 2008 until January 2010. Source