Two former day traders who were convicted of trading on stock tips gleaned from the wife of a former Lehman Brothers Holdings Inc. salesman settled claims by the U.S. Securities and Exchange Commission.
Ex-Lehman Brothers Holdings Inc. broker Matthew Devlin, who cooperated with a U.S. probe of insider trading, was sentenced to three years of probation after prosecutors cited his “noteworthy” assistance.
Christie Hefner, former chief executive officer of Playboy Enterprises Inc., said she was shocked as her husband of 15 years, William Marovitz, confessed to her that he was being investigated for suspicious trading in Playboy shares. They were in their apartment atop a 42-story Lincoln Park tower overlooking the glittering Chicago skyline and Lake Michigan on a March evening in 2010.
Galleon Group LLC co-founder Raj Rajaratnam, the hedge fund manager convicted of insider trading, will be heard again on recorded wiretaps in the trial of his former deputy, Zvi Goffer, the judge overseeing the case said.
Billionaire Philip Falcone’s hedge fund, Harbinger Capital Partners LLC, was told it may be sued by federal regulators for securities-law violations and said it plans to halt investor withdrawals at year-end.
Day trader Daniel Corbin pleaded guilty in federal court in New York today to charges that he conspired to make illegal trades based on confidential tips gleaned from the wife of a former Lehman Brothers salesman.
Managers of the Reserve Primary Fund, the $62.5 billion money-market fund whose collapse set off an industrywide run by investors, committed fraud by failing to provide key material facts to investors and trustees, the U.S. Securities and Exchange Commission said in a complaint.