Richard Lee, of the SAC Capital Lees, had a “senior internet research analyst” friend named Sandeep Aggarwal (illustrated at left), who had an unnamed friend working at Microsoft, who had material non-public information re: “a Microsoft-Yahoo partnership agreement…likely to be announced in the next two weeks.” See if you can guess what happened next.

Anyway, Aggarwal was arrested yesterday. Marginally related, here’s a picture of him in happier times, posing with some of the stuff you could buy from the eCommerce company he founded after his career “analyzing” things.

Sandeep Aggarwal arrested yesterday by FBI agents in San Jose, CA on insider trading charges [@NewYorkFBI]
SEC Charges Tipper of Confidential Information to S.A.C. Capital Portfolio Manager [SEC]
US v. Richard Lee, Sandeep Aggarwal [Complaint]
Sandeep Aggarwal Portrait [CNN Money]
Raising a growth round before aiming for a NASDAQ listing by 2016: The ShopClues Story [YourStory]
*Presumably. Unread emails, the immutable laws of physics, etc.
**Richard Lee also had a friend who had a friend at 3Com, because of course he did:

26 comments (hidden to protect delicate sensibilities)
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Comments (26)

  1. Posted by HighFrequencyHater | July 30, 2013 at 1:33 PM

    Err aren't sell side analyst sort of supposed to do that? Had he written a note suggesting that the merger is more likely and companies would realize "synergies", would that be materially different?

  2. Posted by John Paulson | July 30, 2013 at 1:33 PM

    Just curious, but do you think someone who trades on inside info but looses money, like a lot of money, would ever get prosecuted?

  3. Posted by Paulson & Co. Legal | July 30, 2013 at 1:38 PM

    Zero Hedge posts about gold aren't inside information John.

  4. Posted by quant me maybe ... | July 30, 2013 at 1:39 PM

    With that impish smile and those ruddy cheeks, let's hope that those are boxes of lube 'cause that boy's in for some loving at the big house.

  5. Posted by Guest | July 30, 2013 at 1:39 PM

    If he was the father of a baby with one of the Noel sisters, what shape would the baby's head be?

  6. Posted by WatchedSuitsonTV | July 30, 2013 at 1:40 PM

    If you read the DealBook piece he apparently lied to his bosses about the source, saying it was someone who had retired years ago, as opposed to someone telling him in breach of a duty. Also, that "very specific" info he provided SAC likely took it over the line vis-a-vis materiality compared to just a note saying they thought it was gonna happen sometime soon.

  7. Posted by Raj | July 30, 2013 at 1:40 PM

    Is it like all Indians are into insider trading? Whasssuuubbb?

  8. Posted by guest | July 30, 2013 at 1:52 PM

    depends on how loose we're talking

  9. Posted by Mass immigration | July 30, 2013 at 2:09 PM

    deeply corrupt culture

  10. Posted by Rice Secure | July 30, 2013 at 2:15 PM

    Another reason why the Washington Redskins should change their name.

  11. Posted by UBS Ethnic Studies | July 30, 2013 at 2:18 PM

    To be fair, you've gotta feel pretty bad after the Trail of Tears and the horrid conditions on reservations.

  12. Posted by Guest | July 30, 2013 at 2:25 PM

    If the tipper is South Asian, then SAC calls it "brown edge".
    —guy who's Indian hence allowed to say these things (unlike the guy above).

  13. Posted by Real loose | July 30, 2013 at 2:48 PM

    Shazars mother loose

  14. Posted by hipster hater | July 30, 2013 at 2:58 PM

    As an Indian, I can tell you that I'm into in it, but the consequences of actually *doing* it seem way too harmful to my rep.

    …Kinda like how I feel about thick chicks.

  15. Posted by Lynn Tilton | July 30, 2013 at 4:29 PM


  16. Posted by Guest | July 30, 2013 at 4:37 PM

    Go home, E. Warren

  17. Posted by trader | July 30, 2013 at 5:20 PM

    Yeah, like all these "black edge" tips which they got from black dudes.

  18. Posted by Danker_Banker | July 30, 2013 at 5:28 PM

    I'd suggest he invest in a few gallons Liquid Ass – might keep them at bay for a while anyway…

  19. Posted by guest | July 30, 2013 at 6:12 PM

    tough but fair.

  20. Posted by I need a vacation | July 30, 2013 at 6:29 PM

    Is yewow edge a thing?

    - ElmerASIANfudd

  21. Posted by Andy | July 30, 2013 at 6:53 PM

    The sell-side analyst received information that would immediately deem him inside on the deal. he would not be able to provide any research on this until after it was announced. by telling Lee he also brought him inside and therefore should not have traded on the information.

  22. Posted by guest | July 30, 2013 at 11:38 PM

    Yeah we're gonna need to go ahead and move you downstairs into the warehouse in storage B. We have some new people coming in, and we need all the space we can get. So if you could just go ahead and pack up your stuff and move it down there, that would be terrific, mmm-k.

    Oh, oh, and I almost forgot. Ahh, I'm also gonna need you to go ahead and come in on Sunday, too…

    -B. Lumbergh
    VP Collins Stewart

  23. Posted by Failed level 1 | July 31, 2013 at 12:29 AM

    someone took the CFA

  24. Posted by G. Costanza | July 31, 2013 at 4:44 PM

    Was that wrong? Should I not have done that? I tell you, I gotta plead ignorence on this thing, because if anyone had said anything to me at all when I first started here that that sort of thing is frowned upon… you know, cause I've worked in a lot of offices, and I tell you, people do that all the time.

  25. Posted by Zohan | August 1, 2013 at 4:25 PM

    Given so many transgressors have been members of the Chosen Tribe, I do wonder what the SAC nickname is for THAT edge.

    –Fully Bar-Mitzvahed Member of the Tribe who as such is allowed to wonder these things (but strangely gets smacked-down by his Likud acquaintances every time he utters a kind word about Palestinians)

  26. Posted by Chris Tobe | August 3, 2013 at 8:12 PM

    The SAC culture of corruption extends to their clients as I write about in my new book