Carry On, Insider Trading

Infamy! Infamy! They’ve all got it in for me!

While the world’s been agog at the volatility of the career path of GLG Partners (GLG) emerging markets hot-shot Greg Coffey—now apparently resolved as an amicable ‘See ya,’ effective October—the UK-based, NY-listed, hedge fund manager quietly filed its 10K/A with the US Securities and Exchange Commission reporting the latest consequence of its congenital inability to play by the rules:

On January 25, 2008, the [Autorité des Marchés Financiers, the French securities regulator] notified the Company of proceedings relating to its trading in the shares of Infogrames Entertainment (“Infogrames”) on February 8 and 9, 2006, prior to the issuance by Infogrames on February 9, 2006 of a press release announcing poor financial results. The AMF’s decision to initiate an investigation into GLG’s trades in Infogrames was based on a November 19, 2007 report prepared by the AMF’s Department of Market Investigation and Supervision (the “Infogrames Report”).

According to the Infogrames Report, the trades challenged by the AMF generated an unrealized capital gain for GLG as of the opening on February 10, 2006 of €179,000. The AMF investigation of the Company relates solely to the conduct of a former employee; however the Company was named as the respondent. If sustained, the charge against the Company could give rise to an administrative fine under French securities laws.

Noted with interest I: The filing curiously omitted mention of at least one other GLG entry in the 2007 Excellence in Compliance Cup:

GLG Agrees to Pay More Than $3.2 Million to Settle Charges
US Securities and Exchange Commission press release
Jun. 26 2007

Noted with interest II: GLG principal Manny Roman is a member of the UK Hedge Fund Working Group, which earlier this year created a set of (self-described) high quality best practice standards. One might think that Mr. Roman and his unindicted co-conspirators at GLG might try living up to the standards, but they didn’t get where they are today by leaving €179,000 on the table over a little matter of mere ethics.

GLG Partners Inc
SEC Form 10-K/A
Apr. 22 2008