And another one bites the dust: Hedgette charged with insider trades

Tch-tch, The feds on Monday said they charged former hedge fund manager Hilary Shane with five counts of securities fraud and insider trading in the stock of Compudyne Corp.

Shane, 39, allegedly sold Compudyne shares short in 2001, based on the material, non-public information that Compudyne was engaged in a private investment in public equity offering.

"Despite the fact that the purchase agreements imposed confidentiality and trading restrictions on the investors, Shane...sold Compudyne shares short, based on the material, non-public information that Compudyne was engaged in a PIPE offering." U.S. Attorney's Office for the Southern District of New York said in a statement.

Prosecutors allege Shane, and the fund she managed, made $315,000 in profits from the short sales.

Shane faces a maximum sentence on each count of 20 years in prison and a fine of $5 million or twice the gross gain or gross loss from the offense, according to the U.S. Attorney's Office for the Southern District of New York.

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