Hedge Funds

NASD charges Shane in short-selling probe

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Securities regulators at the NASD have charged that a former hedge fund manager at First New York Securities engaged in a series of illegal short selling trades based on insider information.

The manager, Hilary Shane, allegedly racked up $1.1 million in profits from unlawful short selling of Maryland-based Compudyne in a private placement, according to a civil complaint. Shane is accused of having shorted shares of Compudyne in advance of the stock sale both for her own account and the hedge fund she formerly managed, First New York's FNY Millennium Partners fund.

(Shane's hedge fund is not affiliated with