(Bloomberg) -- Joseph Contorinis, an ex-Jefferies Paragon Fund money manager convicted of insider trading in 2010, can be ordered to pay $7.2 million for profits he made for the fund from the scheme, a federal appeals court ruled.

The U.S. Court of Appeals in Manhattan today upheld a lower court’s finding in a U.S. Securities and Exchange Commission lawsuit that Contorinis must pay the money, even though the profits weren’t his. The decision may affect what others convicted of insider trading on behalf of hedge funds will have to pay in disgorgement.

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