If you’ve been really closely following the SAC-Diamondback-expert-network-etc.-etc. insider trading investigations you might be able to keep the players straight but it’s beyond me. I have a hard enough time keeping one list of their prison sentences. The SEC’s new case against Whittier Trust and Victor Dosti really ought to come with a flowchart:
During at least 2008, a Dell employee (the “Dell Insider”) passed material nonpublic information regarding Dell to Sandeep Goyal (“Goyal”), an analyst at a New York-based investment adviser who had previously worked at Dell. … Goyal, in turn, passed this material nonpublic information to Jesse Tortora (“Tortora”), who at the time was an analyst at the investment adviser firm Diamondback Capital Management, LLC (“Diamondback”). … Tortora, who was a member of a group of hedge fund analysts who regularly shared material nonpublic information regarding technology companies, passed the material nonpublic information that he received from Goyal to other members of the group, including [Whittier Trust employee Danny] Kuo. … Shortly after receiving the Dell inside information from Tortora, Kuo communicated the information to Dosti.
Oh what the heck here’s a flowchart:
I guess that wasn’t so hard. Read more »