Alleged Insider Trader Working for VC Firm (Still!)
Update: 5AM Ventures has terminated Chen Tang In April 2008, buyout firm Friedman Fleischer & Lowe learned that chief financial officer Chen Tang was under investigation for insider trading. The firm immediately suspended Tang, cooperated with the SEC and fired him two months later. What a contrast between FFL and 5AM Ventures, where Tang has been working for at least the past six months as a back-office consultant. 5AM has neither suspended nor terminated its agreement with Tang, even though he was formally charged last Friday with helping to reap more than $8 million in illicit profits via an insider trading scheme. 5AM has declined to say exactly when Tang began work, but we know that he's essentially been manning the books since VP of finance Amy Berliner left in early August to join Andreessen Horowitz. He also was with 5AM while Berliner was still at 5AM, but on maternity leave.
