SAC trader had been fired in bonus scheme: Report
A former SAC Capital trader who pleaded guilty last week to insider trading had been fired by hedge fund in 2008 over a bogus bonus scheme, the New York Post reported Thursday.
The scheme involving Richard Lee was uncovered in 2008 on his first day as a member of Citadel Investment Group's value special situation team, which focused on mergers, unidentified sources told the tabloid.
Citadel accused him of pulling profits from other trading groups to boost his own performance numbers, the Post said. It said Lee's lawyer declined to comment.
At a closed hearing last week, the 34-year-old former SAC Capital portfolio manager pleaded guilty to insider trading charges related to Yahoo stock. Also last week, the Securities and Exchange Commission alleged that Lee's trading based on inside information enabled the SAC Capital fund he managed to generate more than $1.5 million in illegal profits.
(For the full New York Post story, click here.)