MANHATTAN (CN) – The Diamondback Capital Management hedge fund will pay more than $9 million to settle insider trading charges from the SEC, and entered a nonprosecution agreement with federal prosecutors.
The settlements resolve accusations of insider trading by the Stamford, Conn.-based hedge fund in shares of Dell and Nvidia in 2008 and 2009.
The SEC Diamondback, Level Global Investors, of Greenwich, Conn., and seven insiders: Spyridon Adonakis, Anthony Chiasson, Sandeep Goyal, Jon Horvath, Danny Kuo, Todd Newman, and Jesse Tortora.
Diamondback will pay $6 million in ill-gotten gains and a $3 million civil penalty. And it also had to promise not to do such a thing again.