Hong Kong’s financial regulator has accused a renowned hedge fund and its founder of insider trading.
The Securities and Future Commission (SFC) has commenced criminal proceedings against Segantii Capital Management, founder and chief investment officer Simon Sadler as well as ex-trader Daniel La Rocca, according to a statement. The proceedings relate to accusations of insider trading of Hong Kong-listed shares prior to a block trade in June 2017.
Segantii was established in 2007 and in addition to its Hong Kong headquarters, it also has operations in London, New York and Dubai. As of the end of March 2024, it had around $4.8 billion in assets under management, according to a «Reuters» report citing a letter.
No Plea Taken
After appearing in Hong Kong courts, no plea was taken by the two defendants and the case has been adjourned to 12 June 2024. According to the SFC, Sadler and La Rocca were released under certain conditions including cash bail of HK$1 million ($130,000) and HK$500,000, respectively.
J.P. Morgan Job Lost
Separately, La Rocca, who worked at Segantii for nearly 10 years, was believed to be joining J.P. Morgan as its head of APAC cash stocks trading but the hiring has since fallen through and he will no longer join the US bank due to personal reasons, according to a «Bloomberg» report citing unnamed sources.
