SAC Capital Hedge Fund Shady Hiring of Certain Kind of Traders

Hedge Fund SAC Capital Shady Hiring Process – Certain Type of Fired and Blacklisted Hedge Fund Traders.

hedge-fundRichard Lee first day at working in a hedge fund was his last.

On his first day at Citadel hedge fund, Mr. Lee signed into the hedge fund’s accounting system and misstated the value of his holdings, according to people briefed on the matter.
That effort ultimately would have inflated Richard Lee’s returns by about $4.5 million.
Hedge fund Citadel, run by Ken Griffin, detected the misconduct and fired him the next day.

Such a shady move landed him to another hedge fund   SAC Capital Advisors.

SAC Capital,  hedge fund run by the billionaire hedge fund titan Steve Cohen – even federal prosecutors have called a “magnet of market cheaters.”

Hedge fund Citadel employee and SAC’s legal department warned about Mr. Lee’s past, but that made him even more attractive to Steve Cohen, who  hired  Mr Lee right away.

An examination of Mr. Lee’s hedge fund career underscores his importance to the government’s criminal insider-trading case against SAC. Federal authorities in Manhattan announced SAC’s indictment last week, an unusual, forceful action against the hedge fund.

Mr. Lee, who has pleaded guilty to insider trading at SAC and is cooperating with investigators because on how he landed a job at SAC despite his earlier misstep. Richard  Lee’s interview process added to questions about SAC’s hiring practices and controls.

His cooperation and other  evidence suggesting tha hedge fund SAC recruited employees with sources inside publicly traded companies, provided ammunition for the government’s claim that SAC and its units permitted a “systemic” decade-long insider trading scheme.

People briefed on the investigation say that Mr. Lee also possesses a rich vein of information about other illicit activity at SAC, including potential insider trading in the shares of Gymboree, the children’s clothing store.

“Richard Lee has accepted responsibility for his prior conduct,” said Richard Lee’s lawyer, He declined to comment on his client’s time at Citadel, but a person close to Mr. Lee said that he did not intend to misstate the value of the trades.

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