Ex-Jefferies Fund Head Must Pay $7.2M Loss, 2nd Circ. Rules

Law360, New York (February 18, 2014, 12:25 PM EST) -- The Second Circuit on Tuesday upheld a $7.2 million judgment in a U.S. Securities and Exchange Commission insider trading case against former Jefferies Group Inc. hedge fund manager Joseph Contorinis, finding he could be held liable for gains obtained by a third party because of his fraud.

In a 2-1 decision, the appellate court rejected Contorinis' argument that he could not be asked to disgorge profits he never personally made, saying he could be held liable for the fraud itself, regardless of how much money went...
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