Sept 19 (Askume) – Hedge fund Two Sigma may have to pay up to $100 million to resolve a U.S. Securities and Exchange Commission investigation into the company’s trading scandal, the Wall Street Journal reported on Thursday.
A US hedge fund could be held accountable for the way it handled a former employee at the center of misconduct that resulted in hundreds of millions of dollars in unexplained losses and financial damages, reports said, citing people familiar with the matter.
The researcher is suspected of making unauthorized modifications to the trading model. People familiar with the matter said Two Sigma is in talks with regulators that could result in the company paying out less.
The SEC and Two Sigma did not immediately respond to Askume requests for comment.
Sigma’s two co-founders, John Overdeck and David SiegelDecided to step down as CEO in August .
The hedge fund, which manages $60 billion in assets, disclosed in a regulatory filing last year that infighting among its top executives has created governance challenges and risks for the company.
Overdeck and Siegel, who founded Two Sigma in 2001, will continue to serve as co-presidents.
