SEC charges former hedge fund analyst with insider trading related to Radyne PIPE

By Angela McDaniels

Tacoma, Wash., Oct. 20 - The Securities and Exchange Commission said Brian D. Ladin agreed to settle charges that he engaged in unlawful insider trading in connection with a 2004 private investment in public equity offering conducted by Radyne Comstream Inc.

The SEC charged Ladin, a former analyst for hedge fund Bonanza Master Fund Ltd., with improper trading in the U.S. District Court for the District of Columbia.

The SEC's complaint alleged that Ladin accepted a duty to keep the offering information confidential and then, on the basis of material, non-public PIPE information, presented an investment in Radyne to Bonanza, resulting in Bonanza establishing a 100,000-share short position in Radyne stock.

The complaint further alleged that Ladin represented that Bonanza did not hold a short position in Radyne common stock.

Without admitting or denying the allegations in the SEC's complaint, Ladin agreed to pay $330,427, which includes $13,427 in disgorgement and a $317,000 civil penalty. Bonanza and its investment adviser, Bonanza Capital, Ltd., will pay $371,429 in ill-gotten gains.

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