Diamondback Capital Management, a Stamford, CT-based hedge fund, has agreed to pay over $9 million to settle insider-trading charges brought by the Securities and Exchange Commission on 18 January.

As part of the agreement, Diamondback has submitted a statement of facts to the SEC and signed a non-prosecution agreement with the US Attorney’s Office for the Southern District of New York.

The settlement will see Diamondback give up more than $6 million in allegedly ill-gotten gains and pay a $3 million civil penalty. The hedge fund also consented to a judgment permanently enjoining it from future violations of federal anti-fraud laws.

The payment resolves charges against Diamondback of insider trading in shares of Dell and Nvidia Corp in 2008 and 2009, stemming from the regulator’s wider investigation into hedge funds. The charges were filed last week against Diamondback, as well as another firm Level Global Investors, and seven individuals including a former Diamondback analyst and portfolio manager.

The proposed settlement is subject to the approval of Judge Paul Gardephe of the US District Court for the Southern District of New York.

“If approved by the court, we believe that the proposed settlement appropriately sanctions the misconduct while giving due credit to Diamondback for its substantial assistance in the government’s investigation and the pending actions against former employees and their co-defendants,” said George Canellos, director of the SEC’s New York regional office.