A former Element Capital Management trader has been ordered to forfeit more than a year's worth of compensation after an arbitrator found he disclosed confidential information before joining rival hedge fund Squarepoint Capital, according to a report by Bloomberg.

Arbitrator Holly Weiss ruled that Andrew Buonauro breached his employment agreement by sharing Element's proprietary trading information with Squarepoint before leaving the firm in 2022. She found Element was entitled to recover all compensation paid to him during the period of his misconduct, including bonuses and deferred pay.

Weiss concluded that Buonauro knowingly disclosed confidential information that could have helped Squarepoint replicate Element's execution systems. She rejected his claim that the material reflected general market knowledge and cited evidence that he used a personal email account and laptop to conceal his actions. The ruling also highlighted a spreadsheet he shared identifying key trading counterparties and their technical capabilities.

The arbitrator rejected Element's claims for lost profits and development costs, finding the hedge fund had not proved those damages. The decision became public after Element asked a New York court to confirm the arbitration award.

According to the ruling, Buonauro left Squarepoint in early 2025 and now works at Citadel Securities. His lawyer did not immediately respond to requests for comment. Element declined to comment, while Squarepoint and Citadel Securities did not immediately respond.