Whittier and Fund Manager Agree To Pay Settlement for Civil Regulatory Case

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A US$1.68 million settlement was agreed to be paid by Whittier Trust Co. and its former manager Victor Dosti. This was after a civil regulatory case was filed against the company and Dosti for having conducted an insider trading in shares among three technology firms.

SEC accused illegal trading with Dell Inc., Nvidia Corp and Wind River Systems Inc. were said to be done by Whittier and Dosti. This was according to a complaint filed on Friday in the US District Court in Manhattan. The confidential tips were shared by former Whittier fund manager Danny Kuo, who Dosti supervised.

Between 2008 and 2012, the SEC stated that Dostie used nonpublic data from Dell and Nvidia workers to trade ahead five earnings announcements. Another was from Intel Corp. employee about the chipmaker's discussions to buy Wind River in 2009.

According to its website, Whittier has more than US$8 billion assets under its management.

Whittier, a South Pasadena-based company, agreed to pay roughly US$1.52 million representing the ill-gotten gains it has taken. Another fine was said to be paid with interest to settle the case with the US Securities and Exchange Commission. Dosti agreed to pay about US$159,000.

Amid settlement agreements, neither Whittier nor Dosti admitted wrongdoing.

Whittier announced in a statement that it is glad to have settled the matter and has cooperated with the government.

Tags
SEC, Insider trading

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