Hedge Funds

SEC accuses fund of exploiting inside tip

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The Securities and Exchange Commission has charged a hedge fund manager with using insider knowledge of an acquisition to net $750,000 in profits.

The complaint alleges that Shengnan Wang, a former employee of Citizens Bank, used her knowledge of the upcoming 2004 Citizens Financial Group acquisition of Charter One Financial to tip off her husband and a hedge fund friend in whose fund the couple had invested.

Wang allegedly tipped off Michael Tom, a partner and managing director at hedge fund shop Global Time Capital Management of Burlington, Mass., who had also been an employee of Citizens.

The complaint