Just when you think you've heard it all - now this!
SAC Capital is one of the world's best-known hedge funds - a $10bn beast run by trader Stevie Cohen, a man who earns around $500m-a-year. The firm has now been dragged into a bizarre lawsuit which, according to CNBC, has been sealed by a New York judge and sent to arbitration.
The story goes that Ping Jiang, a SAC Capital trader who is said to earn around $100m-a-year, thought that one of his team, 37-year-old Andrew Tong, would bring in more profit if he was generally less aggressive. Jiang is alleged to have demanded that Tong take female hormone tablets (tablets that Tong managed to find on the black market) to ensure that he was less macho. The end result, so Tong claims, is that he took the hormones, became impotent, went off his wife, started to wear ladies dresses and then embarked on a homosexual relationship with his boss! Tong claims that he has suffered emotional and physical distress, and lodged a sexual harassment lawsuit.
SAC Capital and Jiang have denied the charges, saying that the firm 'conducted a thorough investigation and found these scurrilous accusations to be false. We will vigorously defend ourselves and are confident that these claims will be swiftly rejected in arbitration'. Tong is said to have been terminated with cause from the firm in April last year, after less than a year there.
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