Tags: Anthony Chiasson, counterfactuals, downstream tippees, insider-trading, pretty please?, Todd Newman
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 »
Tags: friends of Raj Rajaratnam, insider-trading, Rajat Gupta, schedules
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]
Tags: business school, Danny Kuo, groups that model themselves after the underground alliance depicted in the movie Fight Club, insider-trading, Marshall School of Business, MBA v CFA, resumé builders, USC
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 »
Tags: adorable Goldman Sachs CEOs, Danielle Chiesi, draw me like one of your French girls, illustrations, insider-trading, Lloyd Blankfein, Michael Steinberg
Ex-SAC Capital PM Mike Steinberg seemed pretty surprised when he was found guilty of insider trading.
Ms. Williams recalled the day when Michael S. Steinberg, a portfolio manager at the hedge fund SAC Capital Advisors, was brought before a Manhattan judge to be read the insider trading charges against him. The police escorted him, in handcuffs, into the Lower Manhattan courthouse through the main elevators rather than the usual back way leading into the courtroom. When Mr. Steinberg emerged from the main elevators, there was a look of utter shock on his face. “Being caught is so out of their wildest dreams,” she said.
Danielle Chiesi was a vision in pink. Read more »
Tags: fines, friends of Raj Rajaratnam, insider-trading, pleas, Rajat Gupta
…and that $13.9 million in civil penalties, on top of the two years in prison he’s supposed to serve after being convicted of insider trading, plus the scratch he owes Goldman for sharing its material non-public information with a hedge fund friend, is taking things too far. Read more »
Tags: Hedge Funds, insider-trading, kids, Point72 Asset Management, SAC Capital, the hedge fund formerly known as SAC Capital
…on Thursday, U.S. District Judge Laura Swain is scheduled to punctuate the firm’s remarkable downfall when she rules on its plea to criminal insider-trading charges. If Judge Swain accepts the plea, as expected, the firm will pay an additional $1.2 billion in penalties, including the largest criminal fine ever in an insider-trading case. Since the guilty plea last November, portfolio managers who oversaw more than 10% of SAC’s capital have either left or announced plans to leave, according to people familiar with the firm’s operations. “How could I tell my kids I stayed at a firm that admitted to insider trading?” said one former employee. [WSJ]