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Hedge Fund Manager Fined $2 million for Insider Trading

New York (HedgCo.Net) – Hedge fund firm Clay Capital Management has been convicted by a district court in New Jersey. It’s former Chief Investment Officer James Turner has been found guilty for his role in an insider trading scheme involving the securities of three companies, Moldflow Corporation, Autodesk, Inc. and Salesforce.com, Inc.

The prosecution claims that Turner traded on the inside information in Clay Capital’s hedge fund’s account, his personal accounts and several family member s accounts.$3.9 million illicit gains have been made by traders in total, including his recommendations to several other friends and family members trade in the three companies securities.

In December 2011, Turner pled guilty to securities fraud in a related criminal action brought by the U. S. Attorney s Office for the District of New Jersey and was sentenced in April 2012 to a prison term of twelve months followed by three years of supervised release and ordered to pay a fine in the amount of $25,000. U. S. v. James Turner, Case No. 2:11-cr-00868 (D.N.J.).Clay Capital consented to an order for disgorgement of $1,062,822.36 plus prejudgment interest of $182,444.73, without admitting or denying the allegations,provided that all but $850,000 is waived based on its financial condition.

Based on his criminal conviction and the entry of the permanent injunction, Turner also has agreed to settle an administrative proceeding, in which the Commission would bar him from associating with any broker, dealer, investment adviser, municipal securities dealer or transfer agent.

Alex Akesson
Editor for HedgeCo.net
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