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Hedge consultant blows whistle on billion dollar insider trading ring
by David Campbell on Jan 09, 2013 at 07:35
A former hedge fund consultant currently awaiting sentencing after pleading guilty to passing on inside information has named another 20 individuals he said were implicated in the scandal.
Wesley Wang, who will be sentenced by a New York court later today, previously worked at $14 billion SAC Capital, named by Bloomberg as the most successful hedge fund of 2012, and others.
Late last year SAC told its investors that the US Securities & Exchange Commission was preparing civil charges against the fund, although it denied wrongdoing and said it would meet all costs.
In a letter to the judge hearing Wang’s case, prosecutors said information he had supplied had already ‘contributed substantially to the criminal convictions of over 10 individuals’.
‘The full extent of Wang’s information and co-operation remains to be realised’, they added. According to US reports, Mr Wang wore a wire to gather information on the named individuals.
SAC, managed by Steven Cohen, is thought to be one of the most successful hedge funds of all time. Wang had previously testified to supplying SAC manager Dipak Patel, who has not been charged.
He also testified against another previous employer, Doug Whitman , founder of Whitman Capital who has since been convicted of conspiracy and securities fraud.
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