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U.S. Repays $6 Million to Hedge Fund in Insider-Trading Reversal

  • Diamondback, now closed, also received $3 million from SEC
  • More than $40 million returned after convictions overturned
Preet Bharara speaks during a news conference in New York, on May 19, 2016.

Preet Bharara speaks during a news conference in New York, on May 19, 2016.

Photographer: Peter Foley/Bloomberg
Updated on

Strike $6 million from the total that Manhattan U.S. Attorney Preet Bharara extracted from hedge funds and executives caught in his seven-year insider-trading dragnet.

U.S. prosecutors have agreed to return that amount to Diamondback Capital Management LLC in a deal approved by a federal judge on Thursday. The hedge fund paid the $6 million to the government as part of a 2012 non-prosecution agreement related to Bharara’s insider-trading probe. The fund, which at its peak managed $5.8 billion, closed later that year.