Insider Trading Watchdog Moves to Hedge Fund

Elliott Management has hired Manhattan’s deputy district attorney as its general counsel.

Richard Zabel—the right-hand man of Manhattan District Attorney Preet Bharara—has joined a number of other high-profile securities regulators in departing for the private sector. 

Elliott Management has hired Zabel as general counsel, its top in-house legal position. The New York City-based holding company is one of the world’s largest hedge fund firms with an estimated $23 billion under management. 

According the US Attorney’s Officer for the Southern District of New York, Deputy Attorney Zabel first joined and began prosecuting securities fraud cases in 1991. He rose to second-in-command of the narcotics unit in 1996, then left three years later to spend a decade in private practice at Akin Gump Strauss Hauer & Feld. 

Zabel rejoined the Manhattan prosecutor’s officer—which covers Wall Street—in 2009. Since then, he has served as Bharara’s deputy in a crackdown on insider trading, together winning more than 80 convictions. 

“I’m very, very sad to see him go,” Bharara told Bloomberg in an interview. “Not just because he’s an amazing lawyer, but an amazing friend to me.”

Elliott Management confirmed the hiring when reached by CIO, but declined to make further comment.  

Related: Goldman Poaches FBI Officer Who Convicted Madoff

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