Trader to Pay $8.3 Million for Albertsons Fraud

NEW YORK — A fund manager who benefited from inside knowledge of the Albertsons breakup was ordered to pay $8.3 million to settle charges with the Securities and Exchange Commission, a U.S. District judge here said.

Joseph Contorinis, formerly of Jefferies Paragon Fund, made the trades over a period of months on tips from his friend, UBS investment banker Nicos Stephanou.

Contorinis in a previous criminal trial was convicted of securities fraud in the matter and is serving a six-year prison term. His trades of Albertsons stock with knowledge of confidential information regarding a breakup led by Cerberus Capital Management and Supervalu netted $7 million in illegal profits, the judge said in a summary judgment.