×

Ex-Diamondback Portfolio Manager Pleaded Guilty

Former Diamondback Capital Management portfolio manager Anthony Scolaro's securities fraud case was unsealed Tuesday by the Department of Justice, revealing that he pleaded guilty in December.

gavel_books_200.jpg
Photodisc | Getty Images

Scolaro entered the plea to two counts, after he first conspired to and then actively traded on insider information provided by Schottenfeld trader Franz Tudor on the 2007 acquisition of Axcan Pharma by TPG Capital.

Tudor pleaded guilty in 2009 for his role in the scheme.

Diamondback was one of three hedge funds raided by authorities last November in a wide-sweeping investigation into insider trading.

Scolaro's unsealed case reveals that he has been cooperating with the ongoing investigation since he pleaded guilty last December.

Diamondback declined to comment, but a source close to the firm said Scolaro was terminated in November 2009 due to poor performance, and that Diamondback's investigation into the Axcan deal was inconclusive.

Calls and emails seeking comment from Schottenfeld and Scolaro's attorney were not returned.

The Axcan merger will be part of the government's insider-trading case against former Galleon trader Zvi Goffer, but it is unclear if Scolaro or Tudor will be called to testify.

Court hearings on the Goffer case began Wednesday morning in Manhattan.