insider-trading

The justification for my position is here somewhere, and I'm going to find it.

The justification for my position is here somewhere, and I’m going to find it.

He took his time, mulled it over, considered his life choices, worked on his grief, pondered the criticisms and looked the awful, no-easy-insider-trading-convictions future in the face. It is a future the Manhattan USA isn’t ready to accept just yet.

Prosecutors will ask a full panel of the Second U.S. Circuit Court of Appeals to review a decision three of its judges made in December that put new limitations on prosecutors’ ability to pursue insider-trading cases, according to a spokeswoman in the U.S. attorney’s office….

If the request is rejected, or if the court accepts it but doesn’t overturn or modify the decision, prosecutors could still appeal to the Supreme Court, a move that would also require sign off from the Justice Department.

The ruination of the life and work of Preet Bharara is, of course, bad news for Preet Bharara. It is also bad news for the Securities and Exchange Commission, which has spent the better part of six years letting Preet’s boys at the U.S. Attorney’s Office do its work for it, and then rushing to a neighboring courtroom to win a quick judgment against the evildoers whose evil, it seems, may no longer rise to the level of criminal. Also understandably, they would prefer that easy route remain open to them. Read more »

steve cohenAt some point last year, after he had settled insider trading charges against his firm, the hedge fund formerly known as SAC Capital, Steve Cohen began exhibiting signs of man who felt, if not contrite, than contrite-lite. He agreed to rename his company, stripping his initials from all letterhead, fleece, and signage. He started paying employees to not commit securities fraud. And, most significantly, he agreed to only manage the money of people related to him by blood or marriage, returning billions of dollars to investors, and kissing a whole lot of would-be fees good-bye.

But now? Possibly/probably emboldened by the December appeals court ruling that knocked his No. 2 nemesis, Preet Baharara, down several pegs and officially made it harder for prosecutors to convict people of insider trading? He’s all but finished playing the part of a guy who feels bad about running a firm described as a “veritable magnet for market cheaters.” Not only is he no longer taking orders from Preet, the Feds, of the SEC, but he’s thinking maybe it’s about time he started giving them out. Read more »

lucarelliThe 52-year-old said his inside trading was fueled by drugs and resentment of the Midtown firm, which he said owed him money on commissions. “I didn’t take the drugs to get high, I did it because I can’t drink coffee — that’s a painful trip to the bathroom,” Lucarelli said…Lucarelli, occasionally tearing up, now lives in North Dakota with his brother and says he hopes to become a truck driver. “The one thing about trucking, you’re urine tested all the time,” he said during a 20-minute statement. “If you’re a good driver, which I am, they don’t care about insider trading.” [NYDN, earlier]

lucarelliEarlier today, a man was given a platform to make some brief remarks and ended up telling a rambling story that surprised onlookers with its non-sequiturs, bizarre details, and, at times, volume. Was he doing so during a hearing in federal court or at a bar in downtown Manhattan (let’s just call it The Patriot)? Based on the following clues, you tell us:

  • The man name dropped many a super model he claimed to have worked with
  • He bitched about his boss
  • He worked in a story about getting into– and winning– a fistfight with his father when he was 16
  • Not on this occasion but one past ones, he’s been known to pair flip-flops with sweatpants
  • He spoke of the marriage troubles/bedroom problems associated with having a wife 20 years one’s junior
  • There was a brief aside about coke
  • He was told at least twice to keep it down, because he was yelling

Read more »

wells fargoThe way former Wells Fargo research analyst Gregory Bolan sees it, the Securities and Exchange Commission’s suit against him and a former colleague– Joseph Ruggieri– isn’t just about alleged insider trading. Oh sure, it’s about that, too, but take a couple steps back and you’ll see that this thing is so much bigger. Bigger than them, bigger than you, bigger than all of us. At its heart, it’s about the regulator trying to silences the bros of the world from emailing their office bros to say broisms re: bro-work. It’s about wanting to take away that which bros hold so dear– the right to call other guys bros, to write things like “crush it,” to not use apostrophes, to generally be bro-y. And that’s something for which Gregory Bolan, Bro, will not stand. Read more »

herbalife shakesThe conflict being that the buddies have fled to Poland and don’t plan to return any time soon. Read more »

  • 12 Dec 2014 at 5:20 PM

Deal Judge: It’s Time To Give Up On Insider Trading

lEd. note: This is a new weekly column by Elie Mystal, Managing Editor of Above the Law Redline, wrapping up the week that was in law and finance. Elie is not a practicing attorney, and anything he says that you listen to can and will be used against you.

The Only Issue I Care About This Week: We Have Better Things to Do Than Prosecute Insider Trading. That’s the title of a Justin Fox article in the Harvard Business Review. Sadly, I think he’s right.

In broad strokes the world can be divided up into three types of people:

* Group 1: Yokels who hear “insider trading” and shout “rabble rabble” at someplace they think is called “Wall Street” while they sharpen their pitchforks.

* Group 2: Wealthy elites and their media spokespeople who believe insider trading is a “victimless crime” as if Peter Gibbons from Office Space is their spirit totem.

* Group 3: Prosecutors who want to be Governors and are trying to shore up the yokel vote.

It’s all terrible. EVERYBODY IS WRONG ALL THE TIME. The people who care about rich people “cheating” don’t even understand what insider trading is anymore. The people who cheat have priced in the risk of getting caught. Over-matched regulators bite at the ankles of symptoms while being totally unable to address root causes.

I believe that we could live in a world where people who trade on material non-public information suffered criminal penalties severe enough to make them stop. But I also believe the Mets are one bat away from being a contender. Reality, it turns out, doesn’t give a crap about what I believe.

Read more »

preetbhararawhiteboardAnthony Chiasson and Todd Newman will be enjoying themselves this evening. Preet Bharara, less so. Read more »