insider-trading

  • 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 »

The short response: go fuck yourself. The slightly longer one: Read more »

If You Should Happen To Run In To Carl Icahn…

At Marea, perhaps. Or in a rough-and-tumble Queens schoolyard. Or at a hedge-fund conference. Or on Twitter. Wherever. A word to the wise: Don’t try to break the ice with a crack about certain insider-trading investigations involving Uncle Carl and certain famed golfers. Read more »

Steven A. Cohen proved to be a stickler for the letter of the law when it came to paying the criminal penalty imposed on his former hedge fund as part of its guilty plea on insider trading charges. On April 10, Judge Laura Taylor Swain of Federal District Court in Manhattan gave Mr. Cohen’s SAC Capital Advisors up to 90 days to pay the $848 million penalty, part of an overall $1.2 billion criminal settlement reached with prosecutors last November. On Tuesday, the 90th day since Judge Swain accepted the firm’s guilty plea, Mr. Cohen’s firm made that payment, according to court records. [Dealbook]

According to Dealbook, the government wants 8+. As previously discussed, Martoma and his lawyers do not want a sentence even approaching that length of time, and have so far put forth the argument that it should be a lot fewer years because the ex-trader employee was only responsible for $49 million out of the $276 million SAC Capital made based on inside information about Elan and Wyeth. Read more »

Remember the group of old high school buddies, who put Colonia High Class of ’88 on the map when they were criminally and civilly prosecuted for an “insider trading scheme focused on pharmaceutical and medical technology stocks”? They’ve all received punishments that range from fines to prison time and that’s in spite of the fact that:

  • The phrase “I have some vacation pictures for you” was a cover for payments made to tippers
  • Deals were referred to in code as the “Fat Man,” while updates on the statuses of deals were communicated with lines like “fat man has a friend” and “fat man walks alone”
  • One of the men assured everyone that even if the Securities and Exchange Commission did catch on, they wouldn’t have the resources to do anything about it. (To wit: “The SEC’s got to pick their battle because they have a limited number of people and huge numbers of investors to go after.”

And yet! Read more »