Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

SAC Capital, Citadel and Others Received Apple-Related Information Leak Last Year

SAC Capital, Citadel, Apple information leak: An interesting piece of news came today from a few sources including TheStreet, according to which the research arm of Citigroup Inc. (NYSE:C) has to pay a $30 million fine from the Massachusetts securities regulator. The fine has reportedly been levied on Citi because it gave confidential information about Hon Hai, one of the main suppliers of Apple Inc. (NASDAQ:AAPL)’s iPhone, to some units of Steven Cohen’s SAC Capital Advisors, Ken Griffin’s Citadel Investment GroupGLG Partners and T.Rowe Price.

Steven Cohen

The information, which represented an updated forecast of Hon Hai’s production numbers, had been provided by Kevin Chang, a former research analyst at Citigroup’s Global Markets (CGMI) office in Taiwan. Chang released the information privately before publishing it the next day, which was December 14, 2012.

Citigroup Global Markets lowered Apple’s rating to “neutral” from “buy” two days after the report became available to the public. According to the order, three clients of CGMI sold shares of Apple before the report was published and after receiving the information from Chang.

Citigroup has agreed to settle the matter. “We take our regulatory compliance requirements very seriously and train all of our employees about these obligations,” The Street quoted Citigroup’s spokeswoman Sophia Stewart as saying in an e-mailed statement.

Recommended Reading:

Carl Icahn’s Best Pick Isn’t Apple; These Stocks Are

Hedge Fund News: Carl Icahn, Steven Cohen & Tim Cook’s Quiet Charm

Billionaire Mario Gabelli’s Apple Warning

Disclosure: none

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.