The market regulatory agency accused the New York-based company that it was involved in trading acting on the nonpublic information given by Jon Horvath, a former analyst at Sigma Capital.
Additionally, the SEC has charged its affiliated hedge funds including Sigma Capital Associates and SAC Select Fund, for unjustly benefitting from the company’s violations.
Sigma traded in Dell and Nvidia’s securities in advance of earnings announcements in 2008 and 2009 and accumulated $6.425m in illicit gains.
SEC New York regional office senior associate director Sanjay Wadhwa said, "Sigma Capital’s violations of the securities laws were blatant and recurring."
"The firm obtained key quarterly earnings information before it was public and exploited an unfair edge over the rest of the market to reap millions of dollars in unlawful gains."
In order to settle the SEC charges, Sigma Capital has agreed to disburse disgorgement of $6.425m plus prejudgment interest of $1,094,161.92 and a penalty of $6.425m.
