It seems that as prosecutors and the Securities and Exchange Commission were circling, someone drawn to the “veritable magnet for market cheaters” was hot for some edge, black or otherwise, about Apple iPhone sales. Read more »
Got a prison sentence coming your way? Excited about the prospect of sleeping in bunk beds again but nervous about just about everything else? If your experience proves to be anything like that of former CEO Qwest CEO Joseph Nacchio, fret not: you’re actually in for a pretty good time. Read more »
Guy Who Had Two Ladies Doing His Insider Trading Bidding At The Same Time Was This Close To Nabbing A ThirdBy Bess Levin
Remember Thomas Ammann (pictured at right)? For those who need a refresher, he was an investment banker who met a woman (Jessica Mang, center) at a London nightclub in 2009, started seeing her “at least once a week,” on days he wasn’t with his other girlfriend (Christina Weckworth, left), and then, when Mang asked to crank things up a notch on the relationship in the form of a romantic getaway, told her he’d take her to Seychelles on the condition she’d first use her own money to trade on material non-public information he’d obtained from his job at Mizuho International about Canon’s purchase of OCE NV and then give him half the profits. Mang naturally jumped at the chance to take things to the next level (“I thought [him entrusting me with such an important task] was a massive leap in commitment…I thought, you know, this is a relationship that’s going to go somewhere,” she later told a London criminal court), as did Weckworth when she was asked to do the same, but not in exchange for a free holiday. Anyway, Ammann ended up pleading guilty to “insider trading and encouraging the women to commit insider trading” last year and today was sentenced to 32 months in prison and a fine of 94,568 pounds ($151,820). (The women themselves were somehow found not guilty.) But the most delightful part of this story, reported by Bloomberg this morning? Read more »
SAC Trial Pushed Back To January So Lawyer Involved In Two Cases Doesn’t Have To Start Each Day’s Proceedings Hunched Over Making The “1 Minute Sign” As He Tries To Catch His BreathBy Bess Levin
A federal judge on Tuesday pushed back the insider trading trial of former SAC Capital Advisors portfolio manager Mathew Martoma to January 6. U.S. District Judge Paul Gardephe delayed the trial, originally scheduled for November 4, at the request of Martoma’s lawyer, Richard Strassberg, who is taking part in another trial starting this week…Strassberg, Martoma’s lawyer, is also representing Bank of America Corp’s Countrywide unit in a trial over allegations that it defrauded Fannie Mae and Freddie Mac with shoddy home loans. Because of proceedings in the Countrywide case, Strassberg arrived, out of breath, in Gardephe’s crowded courtroom an hour after the scheduled 12:30 p.m. start of a hearing. “Yes, I have arrived,” Strassberg said, when the court reporter asked if he was present. Gardephe took the bench a few minutes later, and Strassberg informed him that he had to return to the courtroom of U.S. District Judge Jed Rakoff, who is presiding over the Countrywide case, by 2 p.m. [Reuters]
Steve Cohen Has Had Some Time To Think It Over, Would Now Like To Offer The Government A Check For $1 BillionBy Bess Levin
A former Akamai Technologies Inc official agreed to pay over $145,000, and be banned from serving as a public company officer or director, to settle civil charges he provided illegal tips that were funneled to Raj Rajaratnam, the hedge fund manager imprisoned for insider trading. The U.S. Securities and Exchange Commission said Kieran Taylor, a former Akamai senior director of marketing, illegally tipped lifelong family friend Danielle Chiesi, a hedge fund manager at New Castle Funds, about the Internet content delivery company’s plan in July 2008 to lower its revenue forecast…”Taylor’s willing misuse of information about Akamai’s financial situation otherwise unknown to the rest of the investing public made him just another cog in the sprawling Rajaratnam insider trading machine,” said Sanjay Wadhwa, senior associate director for enforcement in the SEC’s New York office. [Reuters]
If you took a random poll of family, friends, colleagues, and strangers on the street, asking them how they’d feel about going to prison, the majority if not all of them would probably say, “Not good.” For most people, prison is a place to steer clear of, for all the reasons you can think of (living in a cell, isolation from the outside world, bad food, low paying jobs, daily risk of sodomy) and probably some you can’t.
Not too long ago, hedge fund manager Raj Rajaratnam counted himself among those who for whom jail time was something to avoid (if not by being an upstanding, law-abiding citizen than by hiring a high-priced attorney to try and get him off after being charged with 14 counts of conspiracy and securities fraud). But now? After having served 21 months of his eleven-year sentence? Raj can honestly say that this prison is great.
And not because hard time forced him to take a serious look at his life or to think about what he’d done or change himself for the better or any of that metamorphosis type crap, but because minus the not being allowed to leave the grounds rules? Raj’s life in prison is arguably better than his life on the outside, which did not include servants or a 34 inch waist. Read more »