Trader Gagliardi Facing Block-Trading Probe, Ex-Employer Says

A lawsuit filed by the hedge fund Evolution Capital Management says that federal authorities are probing the activities of Robert Gagliardi, a former fund manager at the firm, as part of a criminal investigation into block trading.

Evolution, which said in its filing that US Marshals seized Gagliardi’s mobile phone last year in connection with the probe, added that it received a subpoena from the Securities and Exchange Commission earlier this year that was “clearly focused in large part upon Gagliardi,” the complaint said. The fund, which also goes by ECM, is suing Gagliardi in New York state court ...