Former Chelsey Capital hedge fund manager Mark E. Lenowitz has been secretly cooperating with investigators since 2007 to reduce his upcoming sentence for insider trading, The NY Times reports. Lenowitz pleaded guilty to one count of conspiracy and one count of securities fraud in 2007, and is scheduled to be sentenced on February 4.
According to The NY Times, Lenowitz was involved in an elaborate insider trading scheme involving two separate streams of inside information from UBS and Morgan Stanley. There was also a related kickback case involving initial public offerings and a reported bribery scheme in place to keep brokers silent about the transactions.
The details surrounding Lenowitz’s cooperation have not yet been disclosed.