Seven Hedge Funds Unnamed in SEC Complaint
NetNet Writer, Special to CNBC.com
Four additional people were criminally charged today in an ever widening case of insider trading.
An updated civil complaint released today by the SEC provides the best overview: "This case involves insider trading by ten individuals and one investment adviser entity, all of whom are consultants, employees, or clients of the so-called 'expert network' firm, Primary Global Research LLC [PGR]"
The broad strokes of the allegation are this: PGR consultants had access to non-public information—including sales, performance, and earnings data—which they then sold to a series of hedge funds.
So far, only one hedge fund has been directly named by the government—Barai Capital.
There are seven additional unnamed hedge funds.
Most interesting among them is Hedge Fund #7.
By putting the dates in the SEC complaint together with existing new reports, we can reasonably extrapolate that hedge fund #7 is SAC Capital.
By applying the same method to another news story, we can extrapolate that Hedge Fund #5 is Sonar Capital Management.
Hedge Fund #6 may be Empire Capital, where Donald Longueuil was previously employed – but it is difficult to say for certain because reliable dates for Longueuil's employment with Empire cannot be found in news reports to date.
What about the other four hedge funds?
Hedge fund numbers two, three, and four are mentioned in the SEC complaint.
However, since none of the defendants named in the complaint appear to have been employed by any of those three funds, it is impossible to cross-reference biographies against the funds at this time.
Based on the information contained in the complaint, it appears that the government is alleging that trades based on inside information were executed at Hedge Funds numbers two, three, and four.
Also curiously: There is no mention in the SEC complaint of Hedge Fund #1
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