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UPDATE: SEC Charges Poker Buddies With Hedge Fund Insider Trading, Guilty Plea

New York (HedgeCo.Net) – The SEC has alleged that Hyung Lim of Los Altos, Calif., received up to $15,000 and stock tips about a pending corporate acquisition for regularly providing a fellow poker player, Danny Kuo, with nonpublic details ahead of Nvidia Corperation’s quarterly earnings announcements.

UPDATE:

“The former Altera Corp. executive pleaded guilty to passing illegal tips about his company and Nvidia Corp., some which were relayed to a group of fund managers accused of running an insider-trading “criminal club.” Hyung Lim, 46, pleaded guilty today to conspiracy to commit securities and wire fraud before U.S. District Judge Richard Sullivan in Manhattan.”  Bloomberg reports.

Kuo, a hedge fund manager, illegally traded on the information and passed it on to multi-billion dollar hedge fund advisory firms Diamondback Capital Management LLC and Level Global Investors LP.  The SEC charged Kuo and the firms among others earlier this year as part of its widespread investigation into the trading activities of hedge funds.

According to the SEC’s complaint filed in federal court in Manhattan, Kuo and the hedge funds made nearly $16 million trading in Nvidia securities based on Lim’s inside information. The U.S. Attorney for the Southern District of New York also announced criminal charges against Lim.

Alex Akesson
Editor for HedgeCo.net
alex@hedgeco.net
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