New York (HedgeCo.Net) – New York hedge fund Peconic Partners was sued yesterday for firing an employee who reportedly was running his mouth about some shady insider trading activities.
The suit, filed by former Chief Compliance Officer Joseph Sullivan in New York State Supreme Court, accuses CEO William Harnisch of wrongfully firing him.
According to the 30-page complaint, Sullivan said he was let go after voicing reservations regarding Harnisch’s trading activity involving fertilizer company Potash Corp., whose stock plummeted last month.
Sullivan alleged that Harnisch got rid of his 600,000 shares, selling them for $130 a share. He then sold a chunk of his client’s shares for around $90 each. This may have helped to drive the price down of Potash, which is now trading at around $82.
The Securities and Exchange Commission has also been contacted by Sullivan’s legal team to alert them of the possible insider trading activities.
Peconic Partners was founded in 2004 and has approximately $1.5 billion under management.
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