Insider Trading Fest(ivus) 2010

  • 08 Mar 2011 at 1:30 PM

Feds Can Add Loch Capital To The Body Count

Loch Capital for the hat-trick. Read more »

As you may have heard, the Galleon insider trading trial kicks off this week, with Raj Rajaratnam himself expected to take the stand at some point. Like every trial by jury, the process of selecting jurors will prove a formidable task, given the complicated nature of the case, and that the defense needs to make sure the fate of their client will not be left to biased individuals, with certain opinions about Wall Street and Raj in particular. The thing about prejudice, though, is that it doesn’t always present itself in the most direct possible way. Few people will probably offer, for example, that they’re “of the mind that anyone working in the financial services industry is a greedy, corrupt bastard guilty of whatever he or she has been accused of,” but if you took a gander at their reading material and saw highlighted and underlined articles by a certain writer for Rolling Stone you might get an inkling of their point of view. To that end, the questionnaire potential jurors will be asked to fill out for the Galleon trial hit on every possible area where one’s bias could be revealed. Here’s a sampling of the questions:

* Do you like to read books? ______ Yes ______ No If yes, What types of books do you read? ___________________________________

* What TV shows, newscasts, radio shows and internet websites do you enjoy on a regular basis?

* Do you have strong positive or negative views about any of the following individuals. Federal law enforcement agencies, such as the FBI? ____ Yes ____ No Wall Street Executives? ____ Yes ____ No Technology Company Executives ____ Yes ____ No Prosecutors? ____ Yes ____ No Defense Counsel? ____ Yes ____ No If Yes, what are your views? ___________________________________

* Hedge Funds have been reported in the news over the past few years. Do you have any feelings concerning this industry? ____ Yes ____ No If Yes, please describe your feelings: _________________________

* How knowledgeable or familiar do you consider yourself to be about Hedge Funds? Please explain.
_____________________________________________________________

* How honest do you think Wall Street Executives are?
1 Not at All Honest
2 Below Average Honesty
3 Average Honesty
4 Above Average Honesty
5 Extremely Honest
Please explain your answer. ________________________

And here are some questions that will be posed in a follow-up session: Read more »

As you may have read in the papers, the government is currently hard at work trying to prove that employees of certain hedge funds on Wall Street are guilty of insider trading. A bunch of firms have been raided, some arrests have been made, friendships have been destroyed, and a few shops have been forced to shut their doors. The Feds’ little song and dance, experts have noted, appears to be part of a larger attempt to nail one man in particular. Some of you know him as ‘Steve,’ others as ‘my liege’ and others still as ‘Dad.’ To us, he’s simply ‘The Big Guy.’ Read more »

Members of “Team Psycho,” a triathlon team Mr. Freeman practiced with, rejected him from becoming a member because he didn’t always support others with what the club describes as positive “psycho karma,” according to a club member. [Earlier]

One of the many things we’ve learned in the wake of last week’s new insider trading charges is that it wasn’t enough for former CR Intrinsic trader Donald Longueuil to betray SAC’s trust- he felt it necessary to doubly hit Steve where it hurts. In addition to (possibly) engaging in illegal activities (before and) while employed by the hedge fund, he had the audacity to wear a non-SAC approved brand of fleece, North Face, while repping the firm. Said fleece was made famous in the recording in which Longueuil tells fellow trader Noah Freeman that he stashed broken up bits of a hard drive in his zip up on the way to chucking them in various garbage trucks around the city in an effort to destroy evidence. So you’d think he’d want to wear it while the cameras were snapping away but no! Apparently Long’s a bit a whore when it comes to outerwear. Read more »

The former CR Intrinsic trader charged last week with trading on material non-public info has postponed the big day. Read more »

The tech-focused fund, run by Philippe Laffont, has not been charged with any wrongdoing (nor have any employees) but they are a client of expert network Primary Global, which the Feds have taken a particular interest in, so it’s possible. [BusinessInsider]

FINalternatives reports prosecutors have offered a few more details re: which hedge they’re taking a looksee at, vis-a-vis alleged insider trading by some employees. If you haven’t been keeping up with the news much lately or unplugged your phone and computer a few days ago, take a gander. Read more »