U.S. Securities and Exchange Commission
Litigation Release No. 22005 / June 17, 2011
SEC v. Feinblatt, et al., Civil Action No. 11-CV-0170 (SDNY) (JSR)
Former Investor Relations Consulting Firm Employee and Hedge Fund Settle Insider Trading Charges
The Securities and Exchange Commission announced today that, on June 8, 2011, the Honorable Jed S. Rakoff of the United States District Court for the Southern District of New York entered a judgment against Defendant Shammara Hussain in SEC v. Feinblatt, 11-CV-0170, an insider trading case the SEC filed on January 10, 2011. The Judge also entered a stipulation and order of dismissal as to Defendant Trivium Capital Management LLC, a New York-based hedge fund investment adviser which has wound down its investment management business, in exchange for its agreement to cooperate and cease doing business.
The Complaint alleged that Robert Feinblatt, a co-founder and principal of Trivium, and Jeffrey Yokuty, a Trivium analyst, engaged in insider trading in the securities of Polycom, Hilton, Google and Kronos. The complaint further alleged that Polycom senior executive Sunil Bhalla and Hussain, an employee at investor relations consulting firm Market Street Partners that did work for Google, tipped the inside information that enabled the insider trading by Feinblatt and Yokuty on behalf of Trivium’s hedge funds for illicit profits of more than $15 million.
To settle the SEC’s charges, Hussain consented to the entry of a judgment that: (i) permanently enjoins her from future violations of Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder; and (ii) orders her to pay disgorgement of $21,619.80, plus $4,795.47 in prejudgment interest, plus a civil penalty of $21,619.80. Based on Hussain’s financial condition, the Court did not order a higher penalty. Trivium has agreed to cooperate and to not in the future engage in investment management or other operations.
For further information, see Litigation Release No. 21802 (Jan. 10, 2011).