Citigroup fined $37.5 million after analyst sent Hon Hai report to clients
BOSTON (REUTERS) - Citigroup Inc was fined US$30 million (S$37.5 million) by Massachusetts' top securities regulator after an analyst sent unpublished and confidential research about a technology company to institutional clients, including Steven A. Cohen hedge fund SAC Capital Advisors, officials said on Thursday.
William Galvin, Massachusetts' Secretary of the Commonwealth, said Citigroup analyst Kevin Chang sent research about Hon Hai Precision Industry Co, a major supplier of Apple Inc iPhones, to SAC, T. Rowe Price , Citadel and GLG Partners.
The fine comes at a critical time for Cohen's US$14 billion hedge fund, which faces criminal insider trading charges. The Stamford, Connecticut-based firm has said it has done nothing wrong.
Galvin's office said three Citigroup clients traded in Apple stock between the time it received Chang's information and the day his report was official published.