Undercover Mole Has Implicated Another Former SAC Capital Trader In An Insider Trading Scheme
The undercover informant has told federal investigators that she passed confidential information to the trader for years.
Patel, who was a technology stock manager for Steve Cohen's hedge fund, has yet to be charged with any wrongdoing. He left SAC Capital in 2010.
Investigators have been concentrating their efforts on SAC Capital in a big way for years. The heat has been especially intense since last November, when federal prosecutors wrote that SAC CEO Steve Cohen interacted with alleged insider trader, Mathew Martoma in a complaint. Six former SAC employees have been convicted of or pleaded guilty to insider trading since 2009.
The informant in the Patel matter, Reema Shah, had worked as a technology specialist for the mutual-fund manager J&W Seligman & Co. She pleaded guilty last May in a New York federal court to trading inside tips with a former executive at Yahoo Inc. YHOO +1.04%...
A Seligman spokesman said: "We have strict policies and procedures that prohibit the use of material nonpublic information. Ms. Shah's actions were clear violations of these policies and a breach of our clients' and the company's trust."
Shah has been cooperating with the Feds since 2009.