insider-trading

Titan Capital Management co-founder Steven Slawson has had his troubles in the past, but now he’s really in the soup, what with the criminal insider-trading charges in a case that has already won three guilty pleas. Oh, yeah, and with his alleged source ready to hop up onto the witness stand to tell a jury about all of the money Slawson paid him for inside dirt on a child’s clothing company.

No matter: Slawson is positively eager for the chance to prove that professedly innocent people can stay out of jail under such circumstances. Read more »

Rajat Gupta, the Goldman Sachs director who waited but 23 seconds after a Goldman board meeting to call hedge fund manager Raj Rajaratnam with material, non-public information, has lost his bid to stay out of jail. Read more »

Mathew Martoma has not had the best luck over the last number of years. First, he was charged with masterminding the “most lucrative insider trading scheme ever,” during his time at SAC Capital. Then, over the course of his trial, it came out that he’d doctored his transcripts while at Harvard Law School, which resulted in his expulsion. Later, of course, a jury found him guilty of securities fraud. And finally, when he was really down, perhaps at the lowest he’d ever been, Stanford’s business school had to go and take away his MBA, to boot. Still, Martoma his hoping his string of bad luck is finally up and is asking a judge to grant him this one thing. 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]

Just seconds after the prosecutor arguing the appeal introduced herself, the judges grilled her about the case and implied that Mr. Bharara’s office steered insider trading trials to Judge Richard J. Sullivan, who oversaw Mr. Chiasson’s and Mr. Newman’s trial and a subsequent case against another trader. The questioning appeared to send a cautionary message to Judge Sullivan, who is known for often siding with the government, and took a swipe at prosecutors for cherry-picking judges. Judge Barrington D. Parker — interrupting the prosecutor, Antonia M. Apps — referred to Judge Sullivan as the government’s apparent “preferred venue” for insider trading cases. While Ms. Apps argued that consolidating the cases created “judicial efficiencies,” another member of the appellate panel noted the “sheer coincidence that the judge who bought into the government’s theory was the one” assigned to the recent trials. [Dealbook]

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 »