Sacked SAC Trader Alleges Boss Made Him Girlie-Man

Steven Cohen

Steven Cohen gets to wear suits.Photo: Patrick McMullan

Steven Cohen's hedge fund, SAC Capital Management, is weird. With the combination of the founder's Svengali-like persona (super-traders are "totally committed to their own particular style and demonstrate complete conviction when trading," he once wrote), over-the-top richness (fun things at his Greenwich mansion include Damien Hirst's shark in formaldehyde and a skating rink in the backyard), and Pentagon-level of secrecy, it's always seemed like the kind of place where the employees probably get all Eyes Wide Shut after hours. And as it turns out, that might not be so far from the truth! We're late to the party on this one, but yesterday afternoon, Charles Gasparino at CNBC reported new details in the sexual-harassment suit filed against SAC by a former junior trader, 37-year-old Andrew Z. Tong. The suit was filed in the spring but sealed yesterday by a non-fun New York State judge, on the grounds that it was too salacious for public consumption. However, CNBC was able to obtain some very juicy details.

Tong apparently alleges that his boss, star trader Ping Jiang, encouraged him to take female hormones as part of a method Jiang uses in order to make his traders "less aggressive." According to CNBC, Tong is saying that hormones caused him to start wearing dresses and, eventually, to begin a sexual relationship with Jiang. Tong was apparently fired for cause in 2006, and SAC vehemently denied the "scurrilous" accusations in a statement. We had no idea "scurrilous" could also mean "totally awesome."

Details Emerge in SAC Capital Sex Harassment Case [CNBC]

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