insider-trading

Preet Bharara is a big-picture kind of guy. He’s won more than 80 insider-trading convictions. Sure, there’s the one that got away, mostly because the judge presiding was, in Preet’s considered opinion, a fucking idiot. And, sure, it hurt. Still does. But he’s not going to let that get him down. No. He’s going to start a new streak right now. Read more »

As you’ve probably heard, yesterday afternoon Mathew Martoma née Thomas was sentenced to 9 years in prison for orchestrating “the most lucrative insider trading scheme ever” during his time at SAC Capital. Understandably upset and perhaps having also read the civil complaint in which their son’s boss was identified as “Portfolio Manager A,” mom and dad had this to say:

Speaking on the sidewalk outside the old federal courthouse in Lower Manhattan, Mr. Martoma’s parents said he had been wrongly convicted. The couple asked why Mr. Martoma’s former boss, Steven A. Cohen, the billionaire investor who founded SAC, was not also charged with insider trading if their son had done something wrong.

And also:

“…the man who made all the money is on a yacht, my son is going to jail.”

While there is obviously a touch of bias involved here, these statements seem relatively reasonable, whereas the arguments offered for why Martoma/Thomas was found guilty… Read more »

Mathew Martoma, he of the “most lucrative insider-trading scheme in history” Martomas, is going to jail for a while, though for less time than the government wanted. Read more »

Allegations of securities fraud are apparently no reason to slip out of one’s tank top, according to Michael Dupre Lucarelli, seen at left leaving federal court yesterday. Read more »

And whether or not they deserve the speedy attention of a court in Santa Ana, Calif. How’s a week from Wednesday sound? Read more »

  • 05 Aug 2014 at 12:00 PM

Andrew Ross Sorkin Smells Something Fishy

Late last week, Botox-maker Allergan Inc sued Valeant Pharmaceuticals and Pershing Square, alleging the latter two had engaged in insider trading when Pershing bought $1 billion worth of Allergan shares ahead of a takeover offer by the hedge fund and Valeant. On the suggestion of wrongdoing, Valeant called with charges “baseless,” while Ackman stated in a press release that “This is a shameless attempt by Allergan to delay the shareholders’ fundamental right to call a special meeting and vote their shares. Allergan is threatened by our progress toward calling the special meeting. This scorched-earth approach is further evidence of the board’s and management’s further entrenchment.”

Not entirely convinced? Dealbook‘s Andrew Ross Sorkin, who in his column today says WAIT JUST A SECOND, PEOPLE. Read more »

Remember Frank Perkins Hixon Jr? Former Evercore managing director charged with securities fraud (and lying to the FBI!) after he opened up brokerage accounts in his ex-mistress’s and father’s names and then did a little insider trading in them to the tune of $700,000 in ill-gotten gains? Told a judge that he did it in order to stay connected with Destiny Wind Robinson, with whom he fathered a child, as she would not accept cash but was okay with investment ideas? A judge has sentenced him to two-and-a-half years, which would’ve been longer had it not been for the other woman in his life (AKA his wife) asking for leniency on his behalf. Read more »