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The FBI Might Go After Jonathan Hollander Or They Might Not

Last January, analyst Jonathan Hollander’s name was mentioned as possibly having a connection to a Blackstone insider trading case, based on information presented to the government by his former employer, SAC Capital-owned CR Intrinsic. Not much has been heard about Hollander since then, but this morning Reuters‘ Matthew Goldstein reports that he’s actually in the super fun position of waiting to find out if federal authorities still have a problem with him.

One individual sitting on the prosecutorial bubble is former SAC Capital Advisors analyst Jonathan Hollander, who last worked for Steven Cohen’s $12 billion hedge fund in November 2008. Federal authorities have linked Hollander to several allegations of insider trading in both court filings and testimony at a recent criminal trial, but he has not been charged with any wrongdoing. Reuters has learned that prosecutors disclosed for the first time in August that they had taken at least two confidential statements from Hollander at some point over the previous 18 months.

Prosecutors disclosed the Hollander “proffer statements” in an August 25 letter to lawyers for former Jefferies Group Inc hedge fund manager Joseph Contorinis, who was convicted by a federal jury of insider trading in October.

The August letter to Contorinis’s lawyers did not divulge the substance of Hollander’s proffer statements, which a person familiar with the matter said were given some time ago…Proffer statements are generally given by individuals in the hopes of either avoiding charges or negotiating a plea deal. Defense lawyers said it was not uncommon for individuals, in giving a proffer, to describe potential wrongdoing by others in the hopes of getting immunity from prosecution.

Authorities May Be Close To Filing Insider Trading Charges [Reuters]

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11 Responses to “The FBI Might Go After Jonathan Hollander Or They Might Not”

  1. Guest says:

    Hell yeah, go for it. Do it the Goldman way– only the low-level grunts and French are sacrificed. They should realize that by their 37th interview. They are the fall guys:

    http://www.nytimes.com/2010/11/21/business/21trade.html

    “U.S. Is Said to Pursue Broad Insider Trading Inquiry”

    “Goldman Sachs is among the firms under scrutiny, according to a person briefed on the investigation who was not authorized to discuss the matter publicly. The person said the inquiry involved several low-level Goldman employees, not executives.”

  2. Guest says:

    Hell yeah, go for it. Do it the Goldman way– only the low-level grunts and French are sacrificed. They should realize that by their 37th interview. They are the fall guys:

    http://www.nytimes.com/2010/11/21/business/21trade.html

    “U.S. Is Said to Pursue Broad Insider Trading Inquiry”

    “Goldman Sachs is among the firms under scrutiny, according to a person briefed on the investigation who was not authorized to discuss the matter publicly. The person said the inquiry involved several low-level Goldman employees, not executives.”

  3. P_Jiang says:

    I remember this guy. Fondly.

  4. P_Jiang says:

    I remember this guy. Fondly.

  5. Guest says:

    What kind of country do we live in when the government –yes, the US government–can ruin well educated, wealthy professionals’ lives over such trivial things like alleged economic “cheating”.

    -J. Skilling
    Khakiclothes, MN

  6. geicopiggy says:

    Jefferies and Hedge Fund in the same sentence. The world has come to an end.

    -not quite the ubs sucks guy or jeff macke but a fan of their work

  7. Joe says:

    “Defense lawyers said it was not uncommon for individuals, in giving a proffer, to “describe potential wrongdoing by others in the hopes of getting immunity from prosecution.”

    I prefer:
    “I have here in my hand a list of two hundred and five [people] that were
    known to the Secretary of State as being members of the Communist Party
    and who nevertheless are still working and shaping the policy of the State Department.”

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