Yesterday federal prosecutors charged Hafiz Muhammad Zubair Naseem, a Credit Suisse investment banker, with insider trading. He is accused of tipping off a banker in Pakistan with information about nine corporate acquisitions, including the TXU buyout.
It appears that Naseem was more or less a full-time insider trading professional, using his position—as well as his office phone—at Credit Suisse to obtain information about deals and leak them to his foreign contact from the very start. The SEC says he began his lawbreaking “[i]immediately upon obtaining employment at Credit Suisse in March 2006.”
But he doesn’t seem to have been especially clever about it. This wasn’t an elaborate system of dead-drops, or tips passed along through cut-outs. Naseem was simply calling his banker-buddy in Pakistan with the information. Did he really think he’d get away with that for very long? Apparently the answer is yes.
The good news is that Credit Suisse seems to have played a role in catching him. “We immediately brought the activities of this employee to the attention of the relevant authorities,” the Swiss bank said in a statement. Since this type of insider trading is basically theft from his employers and clients, it is good to see that Credit Suisse apparently helped uncover his alleged activities.
Naseem is 37 years old, and a Pakistani national. He worked for the Global Energy Group at Credit Suisse. In addition to TXU, Naseem is accused of passing along tips involving Hydril Co., Trammell Crow Co., John H. Harland Co., Energy Partners Ltd., Veritas DGC Inc., Jacuzzi Brands Inc., Caremark Rx Inc. and NorthWestern Corp. He is charged with one count of conspiracy and 25 counts of securities fraud.
Credit Suisse Employee Arrested, Charged With Insider Trading [Bloomberg]
Posted by Shomari Hines , May 04, 2007 2:53PM
THESE FUCKERS NEVER LEARN
Posted by anonymous , May 04, 2007 3:21PM
I wonder what role Naseem's religion played in this? I bet, a big one. Muslims see nothing wrong with stealing from kaffirs, or non-believers. When will Westerners stop trusting these fuckers?
Posted by , May 04, 2007 3:26PM
Anyone know what level he was at? VP, MD?
Posted by MG , May 04, 2007 3:30PM
What surprised me in the WSJ article last night was that Naseem is 37 years old and an Associate. A 37 year old Associate? That alone should have set off the warning bells.
Anonymous comes across as a bit over-the-top rascist above, but I was wondering essentially the same, albeit in a less profanity-laden all-encompassing get-thee-to-HR way. I would be very interested to see what percent of recent insider trading schemes have involved non-western foreigners. It could just be that foreigners think such schemes will be easier to get away with from afar, or it could be a serious difference in business ethics here vs. there. I think it would definitely be interesting to investigate.
Posted by Anonymous2 , May 04, 2007 3:35PM
anonymous of 3:21PM, what the fuck makes you think that he had a religion to begin with? Just because a person is from Pakistan does not mean that he is believer in any religion. He could very well have been an atheist. In fact anyone from a Muslim background who is working in finance probably isn't very religious because he will be definitely be dealing in interest. IN ANY CASE, you are wrong that Muslims do not see anything wrong stealing from non-Muslims. Stealing (from anyone) is a sin in slam, just as it is in Judaism and Christianity. However, I will add that spoils of war are not considered stolen items in any religion.
Posted by Anonymous2 , May 04, 2007 3:40PM
MG, there is indeed a serious difference in business ethics around the world. This is especially true in Pakistan, where insider trading and stock manipulation is the norm for the firms that are own a seat on the stock exchange. Corruption is ubiquitous in Pakistan, and that has surely played a big role in forming this specific culprit's ethical standards. This culture of poor business ethic is apparent (to a lesser extend) in India. It would not surprise me if the situation is the same in China and other parts of the Far East (remember that Morgan Stanley economists comments on corruption in Singapore before he was fired for said making comments?)
Posted by Anonymous2 , May 04, 2007 3:41PM
MG, there is indeed a serious difference in business ethics around the world. This is especially true in Pakistan, where insider trading and stock manipulation is the norm for the firms that are own a seat on the stock exchange. Corruption is ubiquitous in Pakistan, and that has surely played a big role in forming this specific culprit's ethical standards. This culture of poor business ethic is apparent (to a lesser extend) in India. It would not surprise me if the situation is the same in China and other parts of the Far East (remember that Morgan Stanley economists comments on corruption in Singapore before he was fired for said making comments?)
Posted by Anonymous2 , May 04, 2007 3:42PM
Re comments by Shorami Hines, check out this guys blog: http://shomarihines.blogspot.com/ He is one crazy fucker to be insinuating a connection between race and crime.
Posted by anonymous 3:21 , May 04, 2007 3:57PM
I'm generalizing of course, but in general Muslims see nothing wrong with cheating and stealing from Westerners. Cheating and stealing from fellow Muslims, on the other hand, is wrong. If you have ever travelled to AsiaI'm generalizing of course, but in general Muslims see nothing wrong with cheating and stealing from Westerners. Cheating and stealing from fellow Muslims, on the other hand, is wrong. If you have ever travelled to Asia< North Africa, or the Middle East, as I have, or done business with people from these places, you would know that. That is, if you ever leave your mobile home park. Stupid American.
Posted by anonymous 3:21 , May 04, 2007 3:58PM
I'm generalizing of course, but in general Muslims see nothing wrong with cheating and stealing from Westerners. Cheating and stealing from fellow Muslims, on the other hand, is wrong. If you have ever travelled to AsiaI'm generalizing of course, but in general Muslims see nothing wrong with cheating and stealing from Westerners. Cheating and stealing from fellow Muslims, on the other hand, is wrong. If you have ever travelled to Asia< North Africa, or the Middle East, as I have, or done business with people from these places, you would know that. That is, if you ever leave your mobile home park. Stupid American.
Posted by anonymous 3:21 , May 04, 2007 3:58PM
I'm generalizing of course, but in general Muslims see nothing wrong with cheating and stealing from Westerners. Cheating and stealing from fellow Muslims, on the other hand, is wrong. If you have ever travelled to Asia, North Africa, or the Middle East, as I have, or done business with people from these places, you would know that. That is, if you ever leave your mobile home park. Stupid American.
Posted by Anonymous2 , May 04, 2007 4:05PM
anonymous 3:21, I've lived in 4 different countries, including Muslim ones. And I'm not American. I do agree that people in "emerging markets" tend to be corrupt. They will steal from anyone, including each other. But of course it must give them more joy to steal from Westerners.
Posted by , May 04, 2007 4:08PM
"I'm generalizing of course, but in general Muslims see nothing wrong with cheating and stealing from Westerners."
Basically that's true and the same vice versa, but just because JC thinks insider trading = stealing doesn't mean its true.
Posted by Lee D , May 04, 2007 4:08PM
The reason why the adage that crime doesn’t pay carries weight is because most people who commit criminal acts don’t think things all the way through. I just mentioned yesterday on my blog how many people I have fired, and seen fired over the most picayune, and frankly small-time commission scams. The “perfect crime” takes so much planning, execution, and project management, not to mention cosa nostra-like silence amongst your co-conspirators that you might as well just work for a living.
What always amazes me is the bullshit sums people get busted over. It will be interesting to see what kind of cake this guy’s accomplice was raking in, and if it wasn't a total waste of time.
Posted by Al , May 04, 2007 4:14PM
I WOULD LIKE TO ECHO THE WORDS OF SHOMARI......THESE FUCKERS NEVER LEARN.
Posted by , May 04, 2007 5:10PM
Hafiz Naseem worked at JP Morgan before he joined CSFB. The question now is, was he doing the same while he was at JP Morgan? The fact that he was able to do this for such a long time and the fact that CSFB was the one catching him is really embarassing for the SEC. What has the SEC been doing all these times? Insider trading is rampant in today's Wall Street and has been for the apst 2 years while the SEC has been asleep at the switch. But then, should we be surprised? Incompetence, government, Bush appointees? Just another coincidence?
Posted by anonymous , May 04, 2007 5:15PM
anonymous2, if the guy was from Pakistan, assuming he is a Muslim is not exactly a stretch. While it's nice to know stealing is a crime in "slam" (is this the newer COOLER spelling?) he obviously didn't give a fuck and hopefully he'll get what's coming (in)to him.
Posted by Brit , May 05, 2007 8:15AM
Hello, his middle name is Muhammed for God's sake, of course he's a Muslim.
Anyway I just love how he was obviously an incompetent loser if he was still only an associate at the age of 37, which makes me think he got his job because of some stupid "diversity" policy, ie took the job away from some more qualified person who was too white for Credit Suisse's HR department to stomach, cocks.
Posted by , May 05, 2007 1:03PM
Brit
Are you an idiot? Corporate diversity policies dont help east or south asians. Most of the asians on the street are plain fucking smarter than you. Now go back to trading 1000 share blocks on the NYSE.
Posted by Jonathon Brighton , May 06, 2007 4:47PM
People here are saying he is a muslim because of his NAME. However if you meet someone called David Smith, it does not mean he is christian eventhough David comes in the Bible(David and Goliath).
I dont think you should be mentioning religion. As anyone can be corrupt from whatever backround.
Personally i dont think the only people involved was him and his overseas friend, considering the amount of different companies and high amount of money involved, there has to be other people involved and they should be brought to justice aswell.
Posted by nm , May 06, 2007 5:04PM
"As anyone can be corrupt from whatever backround."
That is not quite correct, as corruption is very much a western concept.
Posted by Anonymous , May 06, 2007 7:11PM
"corruption is very much a western concept"
... how many languages do you speak, nm?
Posted by nm , May 07, 2007 4:14AM
3 to 5, depending on the level. What I was trying to say is that most non-western societies have no concept of "corruption", mostly because they have no loyalty towards a legal system.
Posted by Judge Dredd , May 07, 2007 6:13AM
His Pakistani accomplice is a guy named Ajaz Rahim. The two were together at American Express bank in Lahore. Ajaz Rahim is a big time crook himself, known throughout the financial circles in Pakistan as having amassed vast amounts of wealth through insider trading and market manipulation. He is the right hand man of Akeel Karim Dhedhi (AKD), the biggest Don of amoral Pakistani stock brokers and the biggest market manipulator of Pakistan. Incidently, US authorities informed the Pakistani Central Bank about Ajaz Rahim and the Central Bank had him fired from his job as head of investment banking at Faysal Bank. The crook has now fled to Canada, the chosen abode of all Pakistani outlaws fleeing from justice.
Posted by Come with it , May 07, 2007 7:28AM
Nm - corruption is primarily a western idea, but it can be applied to non-western peoples, so, yes, "anyone can be corrupt from whatever background."
Posted by david , May 07, 2007 9:33AM
Jonathon Brighton, you are right that David comes from the Old Testament. However, since David was a king of Israel the name is clearly of Jewish origins, not Christian.
Posted by anonymous , May 11, 2007 10:24AM
You are all fucking racists and bigots, and totally ignorant. If you think that Islam teaches that its OK to steal from non muslims/kafirs, you have no clue what Islam is. I feel one should atleast have a basic level of knowledge about something before making a blatant statement. Making such statements and comments just goes to show how fucking unintelligent and stupid you are.
Posted by anon , May 11, 2007 10:40AM
not to swing from anon 10:24's jock or anything, but all the muslims I've worked with have been hard working, honest, and displayed great integrity. Turks, Iranians, Bangladeshi, they were always great team players.
The hindus, sikhs, and baha'i on the other hand would all stab you in the back the first chance they got, and always had an excuse for why something was not their fault.
Racism typically grows from two roots: lack of familiarity with other cultures, or great familiarity with other cultures.
Posted by qm , May 19, 2007 9:27AM
crooks can be from any and all religions. be tolerant towards all relegions and do not stereotype. let the legal system play its course and give due punishment to all law breakers.
Posted by Anon , May 26, 2007 8:00AM
Cheat itself does not have any religion. A person irrespective of his faith or belief can cheat anyone as long as he or she thinks they are smarter than the rest.
Aren't we all cheats?