Former NYC hedge fund manager convicted on federal charges in $7M insider trading caseBy AP
Wednesday, October 6, 2010
Ex-hedge fund boss convicted in NYC in stock scam
NEW YORK — A former hedge fund manager in New York City has been convicted on federal charges he participated in a $7 million insider trading scam.
A jury in Manhattan federal court on Wednesday found 46-year-old Joseph Contorinis guilty of one count of securities fraud conspiracy and seven counts of securities fraud.
Prosecutors said he executed illegal trades from 2004 through June 2006 when he acted on information he received from a close friend who was an investment banker. At the time, he managed a hedge fund at an investment advisory firm.
Contorinis could face up to 20 years in prison on the most serious charge and millions of dollars in fines when he is sentenced Feb. 4.
Tags: Corporate Crime, Corporate Governance, Fraud And False Statements, New York, New York City, North America, United States