Del Mar Asset Management LP sued a former trader and his new employer, White Bay Advisor USVI LLC, alleging breach of contract and misappropriation of trading models.
Bret Chesney learned New York-based Del Mar’s trading models and strategies while working as a senior trader on the firm’s index-trading desk, Del Mar said in the suit filed today in New York state Supreme Court. Before he resigned June 16, he e-mailed proprietary materials reflecting Del Mar’s strategies and research to his personal and White Bay accounts, according to the complaint.
White Bay, a U.S. Virgin Islands company, wasn’t involved in index trading before hiring Chesney, who began to actively trade on the firm’s behalf on June 17, the day after he resigned, according to the suit.
“By virtue of these brazen acts, the defendants have effectively usurped Del Mar’s index trading business and, overnight, put White Bay in the index trading business,” Del Mar said in the complaint.
Del Mar sued for breach and interference with Chesney’s contract, breach of the duty of loyalty, aiding and abetting that breach, and misappropriation of trade secrets.
Elli Ausubel, who answered the telephone at a New York-area number for White Bay, said the firm had no immediate comment. A message he took for Chesney wasn’t immediately returned.
The case is Del Mar Asset Management LP v. Bret Chesney, 650729/2010, New York State Supreme Court, New York County (Manhattan).