[ by Melanie Gretchen ] Diamondback Capital Management and SEC have agreed to settle insider trading charges brought by the SEC just last week, on 1/18/12.  Terms of the settlement are subject to court approval.  Diamondback would pay over $9 million in disgorgement ($6 million) and civil penalties ($3 million).  The presiding judge is Paul Gardephe of the U.S. District Court for the Southern District of New York. The Stamford, CT-based hedge fund adviser submitted a statement of facts to the SEC and federal prosecutors, and entered into a non-prosecution agreement with the U.S. Attorney’s Office for the Southern District of New York, according to the SEC. SEC Findings and Allegations. Diamondback allegedly relied on insider information when it traded in shares of Dell Inc. and Nvidia Corp. in 2008 and 2009.  Last week, the SEC brought insider-trading charges against the firm, a 2nd hedge fund advisory firm, and 7 individuals - including a former Diamondback analyst and a former Diamondback portfolio manager. SEC Sanctions. The SEC considered the cooperation provided by Diamondback to the SEC investigation.  The firm conducted extensive interviews of staff, reviewed voluminous communications, analyzed complex trading patterns to determine suspicious trading activity, and presented the results of its internal investigation to federal investigators. [SEC PR 12-16, 1/23/12]