insider-trading

2014: Not a good year to be named Steve A. Cohen. For any expecting parents out there thinking about going with S.A.C., consider Bill or Ted instead. Moving forward perhaps thing one should fall under names we don’t give kids anymore, like Mussolini or Stalin. Read more »

To be fair, we don’t actually know 1) how much money was raised and 2) if his friend needed a heart. It could’ve been a kidney or liver or a lung. What we do know is that U.S. District Judge Richard Sullivan was somehow unmoved by this argument, made on behalf of ex-SAC employee and convicted insider trader Mike Steinberg: Read more »

Michael Steinberg, a portfolio manager at Steven A. Cohen’s SAC Capital Advisors who was found guilty last year on insider trading charges, has asked for a two-year sentence, far shorter than the term recommended by probation officials. In a 65-page sentencing memo, Steinberg’s lawyer Barry Berke referred to his “character and broader life accomplishments” in arguing that his sentence should be only two years in prison. A report by the court’s probation department recommended that Steinberg be sentenced to a prison term of 4-1/4 to 5-1/4 years for his December conviction on one count of conspiracy to commit securities fraud and four counts of securities fraud. “Mr. Steinberg is a man of many admirable individual characteristics — but more than that, he is a giver and a doer, someone whose contributions to the happiness, success and well-being of his family, friends, and many others are second to none,” Berke wrote to U.S. District Judge Richard Sullivan. [Reuters]

As you’ve no doubt noticed, a number of hedge fund managers have in recent years been found guilty by a jury of their peers of insider-trading, a nebulous and gray-area-filled offense that some people think perhaps should not be illegal but which, all the same, is, and which conviction of said crime carries with it the potential for quite a few years in a place where pampered financiers don’t always get the best of it. Given the latter, everyone who has been found so guilty by said jury of said peers has asked judges with higher pay grades to find that, in spite of their deep and abiding faith in American jurisprudence, 12 ordinary men and women committed a grave miscarriage of justice against them.

To date, none have succeeded, or really even come close to succeeding. So it is likely to be for Anthony Chiasson and Todd Newman, late of the late Level Global Investors and the late Diamondback Capital Management, respectively, who got rolled by their former analysts for the sharing of and trading in all manner of secret sauce about Dell Inc. and other technology companies. But man oh man, what if they did succeed where all others have failed? Let’s just say you could cancel that twice-life-size bronze monument to Preet Bharara planned for Foley Square. Read more »

Rajat Gupta, the former Goldman Sachs Group director convicted in a 2012 insider trading scheme tied to the Galleon Group LLC hedge fund, agreed to surrender to prison authorities on June 17 to begin a two-year sentence, a federal judge in Manhattan said. Gupta, 65, lost a bid for a new trial last month, when a three-judge appeals panel upheld his conviction. U.S. District Judge Jed Rakoff said in an order made public today that Gupta and prosecutors consented to the surrender date. [Bloomberg]

In the spring of 2001, though he didn’t know it at the time, Mathew Martoma made a horrible mistake. After being expelled from Harvard Law School for falsifying his transcripts, Martoma (né Thomas) applied, was accepted to, and ultimately chose to attend Stanford’s Graduate School of Business. While having an MBA on his resumé may have helped Martoma in the short-term, years later it would cause him immeasurable heartache, when Stanford stripped him of his degree, deciding that it was too good to have a convicted insider trading among its alums. One business school not too good to embrace a person convicted of securities fraud? University of Southern California’s Marshall School of Business. Danny Kuo found this out when he was looking for some sort of diversion to keep his mind off of the possibility of going to prison in 2012. Read more »

  • 16 Apr 2014 at 4:40 PM

Steve Cohen Needs Your Best Trade Ideas

He’s got 90 days to make his fine back. Can he do it? With your help, he just might. Read more »