On June 13, 2025, the U.S. Attorney’s Office for the District of Massachusetts announced the arrest of former Miami-based hedge fund manager Kris Bortnovsky (a/k/a Kris Bort) in the Southern District of Florida. Bortnovsky, the president and co-founder of Sakal Capital Management and manager of the Sakal US Fund LLC, was charged in the District of Massachusetts with insider trading and obstruction of justice. Bortnovsky is accused of generating more than $4 million in illegal profits in the insider trading scheme. The six-count indictment specifically charges Bortnovsky with two counts of securities fraud; two counts of conspiracy to commit securities fraud; one count of making false statements; and one count of witness intimidation. He is currently scheduled for an initial appearance and arraignment in the U.S. District Court for the District of Massachusetts on July 10, 2025.
According to the Indictment, which was unsealed on June 13, 2025, Bortnovsky worked as a hedge fund manager from at least 2017 through 2019, during which time he conspired with others to trade in the securities of certain publicly-traded companies based on material nonpublic information, including quarterly earnings results and planned acquisitions before they were announced publicly. According to federal prosecutors, Bortnovsky received the MNPI from company insiders who were major investors or board members in the companies, and then traded on the tips in violation of the duties of trust and confidence owed to the companies or to the sources of the information. Bortnovsky allegedly purchased securities for his personal benefit and caused the Sakal US Fund to purchase securities based on the tips. In furtherance of the scheme, Bortnovsky and his co-conspirators allegedly attempted to conceal the scheme from regulators and law enforcement officials by communicating about the MNPI in person, using coded language, and sending false exculpatory messages.
The obstruction of justice charges stem from statements Bortnovsky made during an interview in November 2021 with an FBI agent and an investigator of the U.S. Attorney’s Office for the District of Massachusetts. During the interview, Bortnovsky allegedly made false statements regarding the basis of his securities trades and his access to inside information. In 2022, following Bortnovsky’s arrest, he agreed to certain pre-trial conditions of release from the court that prohibited him from having any contact with a co-conspirator who Bortnovsky reportedly knew was cooperating with the government’s investigation. Despite the court’s order, Bortnovsky allegedly intimidated or attempted to intimidate the witness by following him into an orthodox synagogue and staring at him while wearing dark sunglasses, in an effort to prevent him from providing testimony in the case.
DOJ Press Release |Unsealed Indictment| Docket Entry – Electronic Notice of Hearing