• Burn everything!


    Crackdown On Insider Trading May Have Actually Reduced Insider Trading

    A question that you may or may not find interesting is: have the U.S. government’s rather strenuous recent efforts to stamp out insider trading actually reduced insider trading? How would you go about answering that, if you really wanted to know? I guess the right approach would be a survey; like, go email every hedge […]

    / Jun 26, 2013 at 10:22 AM
  • turneyduff


    A Hedge Fund Trader Named “Baby Arm” Knew It Was All Over After Hearing The Tracks To “The Good Ship Galleon”

    As some of you may recall, the day after Galleon Group founder Raj Rajartnam was indicted on insider trading charges, the Post dug up a rap song that had been recorded years earlier called the Good Ship Galleon, commissioned, of course, by party animal Raj Rajaratnam. All we knew at the time was that the artists featured in the ditty went by the names Jesse Jaymes and Cleveland D, but not why this happened or the creative process that went into producing the tune. Lucky for us, Wall Street memoirist and Galleon alum Turney Duff happens to be on a first name basis with Cleveland D because he is Cleveland D, as we find out in Chapter 8 of The Buy Side. Sayeth Mr D:

    / Jun 6, 2013 at 6:06 PM
  • turneyduff


    This Is A Story About Hookers And Blow. But It’s Also A Cautionary Tale About What Happens To Retirement-Age Prostitutes Who Fail To Set Up Nest Eggs For Themselves.

    Over at the Post this afternoon you will find an excerpt from former trader and Galleon alum Turney Duff’s forthcoming memoir, The Buy Side: A Wall Street Trader’s Tale of Spectacular Excess. Whether you read it as an actual non-fiction account of his time at Argus Partners circa summer 2002, the literary pretensions of a […]

    / May 30, 2013 at 2:57 PM
  • david slaine


    David Slaine, Government’s Undercover “Tip-Mining Machine,” Apparently Under The Impression Insider Trading Works On A 3-Strike Basis

    Remember David Slaine? For those who need a refresher, he is the former Morgan Stanley managing director and ex-Galleon trader who began working as an FBI informant in 2007 and who was outed for doing so by the Wall Street Journal in January 2010. At the time, we learned a few notable things about Slaine, some of them germane to his role in helping the government go after people trading on material non-public information, others special in their own way, like:

    1. He takes french fries, and perhaps all snacks, very seriously.

    In 1993, Slaine triggered a fist-fight with a colleague on the trading floor after needling him because he wouldn’t share his french fries. Others broke up the fight.

    2. He doesn’t wait for people to towel off and get dressed before knocking their teeth out.

    One morning early in 2001, before trading began, Gary Rosenbach, then was the No. 2 executive under Mr. Rajaratnam, and Slaine were in a steam room together after exercising at an Equinox Fitness Club. Mr. Rosenbach was pressuring Mr. Slaine to improve his performance. As Mr. Rosenbach lay on his back on a bench, Mr. Slaine punched him, giving him a black eye and ending their friendship.

    3. Humans aren’t the only ones often asked “you want a piece of me?”

    He once smashed a computer keyboard in a fit of rage, says a person familiar with the incident.

    4. While working on Wall Street, he eschewed the traditional channels of employee recruitment (Wharton, etc), preferring instead to pick up fresh analysts at the club.

    While at Morgan Stanley, he met [Craig] Drimal, then a nightclub bouncer at the Vertical Club in Manhattan. The two quickly formed a friendship based on a shared passion for weight lifting and their mutual ability to bench-press 400 pounds…Shortly after arriving at Galleon, Mr. Slaine persuaded Galleon officials to give a position to Mr. Drimal, who then was working as a bouncer at the Roxy nightclub in Manhattan.

    5. Being a person with whom he “formed a friendship based on a shared passion for weight lifting and [a] mutual ability to bench-press 400 pounds,” possibly the greatest line written about anyone who’s ever worked on Wall Street and which which cannot be said enough, means little in the long run if he knows you’ve been playing it fast and loose with securites laws.

    In July 2007, the FBI showed up at Mr. Slaine’s door on W. 57th Street in Manhattan and confronted him. Mr. Slaine agreed to help the government. At the time, federal prosecutors in Manhattan were trying to make headway on another investigation that eventually led to the charges involving Galleon. They asked Mr. Slaine who he knew that might be participating in insider trading. Mr. Slaine’s answer: his friend Mr. Drimal, according to people familiar with the matter. In September 2007, Mr. Slaine—identified in the complaint as CS-1—tried out his body wire for the first time, meeting Mr. Drimal in New York. During the meeting, Mr. Drimal gave Mr. Slaine a piece of paper with four stock symbols, according to the complaint. He told Mr. Slaine the four companies were all acquisition targets. At the meeting’s end, Mr. Drimal told Mr. Slaine to destroy the list. He warned him to “be careful” in trading the securities because no news of the takeovers had surfaced publicly…After the meeting, Mr. Slaine went to a nearby hotel where an FBI agent was waiting, says a person familiar with the matter. The pair went to a room where Mr. Slaine removed the wire.

    Anyway, Bloomberg recently checked in to see what Slaine’s been up to these last couple years and other than his “multi-year experience” with the FBI being “tremendously traumatic,” he seems to be doing pretty well.

    / Dec 3, 2012 at 1:16 PM
  • insider-trading, News

    We May Soon Find Out What The “Unique Constellation Of Ailments Ravaging” Raj Rajaratnam’s Body Are, Specifically

    On October 13, Judge Richard Holwell will pass down a sentence for convicted insider trader, Raj Rajaratnam. If the prosecution has its way, the Galleon Group founder will go away for twenty-four years. Obviously, the defense would prefer a little less time and in August, following Raj’s brother’s unsuccessful appeal for people to send character […]

    / Sep 30, 2011 at 1:36 PM
  • News

    Federal Judge Wants to Keep an Eye on SEC to Make Sure They’re Not Bullying Rajat Gupta

    You might think – particularly if you’re a certain hedge fund manager counting down the days to a September sentencing – that Rajat Gupta did pretty well by not being prosecuted criminally (yet!) for allegedly passing inside information to Galleon. All he’s got so far is an SEC administrative action looking for “disgorgement of ill-gotten […]

    / Jul 12, 2011 at 2:46 PM
  • News

    Joe Nocera Wants Investors Whose Managers Insider Traded To ‘Pay’

    It is implausible that every one of Rajaratnam’s sophisticated investors were in the dark. Yet the law says that, unlike the Madoff investors, they bear no responsibility for ignoring red flags. On the contrary: They are being rewarded for looking the other way…The phrase I find myself muttering a lot these days is: “There oughta […]

    / Jun 14, 2011 at 10:16 AM
  • News

    Attorney For Accused Insider Trader Has Pretty Logical Explanation For How The Government’s Been Able To Make His Client *Appear* Guilty

    Earlier today, US prosecutors rested their case against former Galleon employee Zvi Goffer, who like his old boss Raj, has been accused of insider trading. Here’s what Assistant U.S. Attorney Richard Tarlowe had to tell the jury: Tarlowe urged the jury to consider why the three men used prepaid phones that they subsequently destroyed, why […]

    / Jun 1, 2011 at 3:12 PM
  • News

    Raj Rajaratnam’s Brother Wants People To Send Letters To The Judge About His Character

    He requested their help last week and even included some links on the proper formatting to use when drafting missives in an attempt to convince a judge to be lenient in sentencing. From: Rengan Rajaratnam Sent: Tuesday, May 18, 2011 Dear Friends, I want to thank you for your support. Your calls, emails, texts, and […]

    / May 23, 2011 at 1:16 PM
  • News

    How To Destroy Evidence Of Insider Trading: Lesson 3

    If you’ve been closely following the government’s Insider Trading Fest(ivus) 2010/2011 you know that one thing that’s emerged is a detailed guide to how one should go about destroyed evidence of securities violations that a jury would not look upon kindly. Garrett Bauer spoke to us at length about the benefits of washing versus burning […]

    / May 20, 2011 at 1:28 PM
  • News

    Raj Rajaratnam’s Jury Consultants Did Not Foresee This Outcome

    Empirical Creative was paid about $300,000, the people familiar with the situation say, for services that included a mock trial, during which his lawyers employed two main defense themes: that the information prosecutors said involved illegal inside tips was already public, and that the government’s witnesses weren’t credible. During the mock trial, the consultants discovered, […]

    / May 18, 2011 at 11:10 AM
  • News

    Raj Rajaratnam Juror Offers Insider Tips For Any Would-Be Insider Traders

    So you’ve started a hedge fund and have decided the best way to maximize returns for investors is by trading on material non-public information. With the government’s crackdown on insider trading, odds are you will ultimately get caught and, if you’ve suffered blunt trauma to the head, will decide to take your chances at a […]

    / May 16, 2011 at 12:44 PM
  • News

    Hey, Raj Rajaratnam’s Lawyer, Do You Have A Comment For CNBC?

    Yes he does! “Get the fuck out of here. That’s what I’ve got for CNBC.”

    / May 11, 2011 at 3:36 PM
  • News

    Raj Rajaratnam’s High-Priced Legal Team Pleased With Thrilling 23-14 Victory

    “We started out with 37 stocks, we’re down to 14,” defense attorney John Dowd said today after his client was found guilty on 9 counts of insider trading and 5 counts of conspiracy. “The score is 23 to 14 for the defense. We’ll see you in the Second Circuit.”

    / May 11, 2011 at 3:07 PM
  • News

    Casting The Raj Rajaratnam Movie

    Earlier this morning, Raj Rajaratnam was found guilty on 9 counts on insider trading and 5 counts of conspiracy. He is probably not in the best of moods right now, as he may be going away to a place that doesn’t give you extra mayo on the side of your tuna sandwich, for nearly 20 […]

    / May 11, 2011 at 12:10 PM
  • News

    Raj Rajaratnam Jury Still Listening To Wiretaps

    We’re into Week 3 of deliberations on the insider trading case, with jurors asking to play conversations between Raj and his former friends/sources of what may or may not have been material non-public information, in addition to a phone call between Raj and his little brother, who could not match big bro’s skills in (ALLEGED) […]

    / May 9, 2011 at 1:17 PM
  • News

    Raj Rajaratnam Suspiciously Contracts Dire Case Of Athlete’s Foot Monday After Royal Wedding Hangover

    Was he unable to make it to court today because he had to have emergency surgery to treat a bacterial infection or because he was too tired from staying up all night combing through pictures of Kate Middleton in that he dress he told friends was “to die for” and couldn’t get enough of?

    / May 2, 2011 at 2:05 PM
  • News

    Raj Rajaratnam’s Lawyer Is Confident The Jury Will Do The Right Thing

    As previously mentioned, the jury on the Raj Rajaratnam insider trading trial are expected to begin deliberating today. While the Galleon founder is, of course, innocent until prove guilty, much of the evidence brought by the prosecution has made him look not so good, including but not limited to recordings of Raj complimenting Danielle Chiesi […]

    / Apr 25, 2011 at 11:33 AM
  • News

    Raj Rajaratnam Defense: Prosecution’s Witness Are Liars

    Earlier this morning, Raj Rajaratnam’s 7-man legal team led by attorney John Down gave its final remarks in the insider trading case. While the Galleon founder is, of course, innocent until prove guilty, much of the evidence brought by the prosecution has made him look prettay prettay prettay bad, including but not limited to recordings […]

    / Apr 21, 2011 at 11:56 AM
  • News

    Raj Rajaratnam Prosecution Really Not Sure What Else To Tell You

    The Galleon founder demonstrated “in his own words” why he’s guilty of insider trading, Assistant US Attorney Reed Brodsky said in the government’s closing statement this morning.

    / Apr 20, 2011 at 12:15 PM

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