Remember, about a year ago, when hedge fund Level Global was rumored to have a government mole in its ranks? At the time, the firm’s representatives said such reports were total bull shit, and, investors were told, here’s how they knew that to be the case:
“As is the case each time there is a new development in the U.S. Attorney’s investigation, we have conducted an extensive internal factual correlation analysis, cross-referencing the facts in the complaints to our firm’s records. Our experienced outside legal counsel has also conducted its own analysis. Based on all of our work and analysis, we have concluded that these complaints do not appear to be referencing Level or Level personnel.”
Frankly, LG was getting a little tired of having to constantly run factual correlation analysis in order to prove the world wrong but c’est la vie. Anyway, despite usually having a 99.9% accuracy rate, the factual correlation calculator apparently missed one.
Last month, federal prosecutors in Manhattan said in a court filing in the case of a PGR employee that Level Global had made a $1.7 million profit by covering a short position it had in Taiwan Semiconductor Manufacturing Co. Ltd. in June 2009. That May and June, a Level Global technology analyst had about seven phone calls with Manosha Karunatilaka, a PGR expert who worked at TSMC and has pleaded guilty to supplying inside information to investment fund clients, prosecutors said. The Level Global technology analyst, Spyridon “Sam” Adondakis, was overseen by Mr. Chiasson and is cooperating with the government’s investigation, the Journal has previously reported, citing people familiar with the situation.
And now this is happening: Continue reading »
Goldman Sachs Chief Executive Lloyd Blankfein has hired Reid Weingarten, a high-profile Washington defense attorney whose past clients include a former Enron accounting officer, according to a government source familiar with the matter…The move to retain Weingarten comes as investigations of Goldman and its role in the 2007-2009 financial crisis continue. The Securities and Exchange Commission scored a $550 million settlement against the bank in a fraud lawsuit in July 2010, but other investigations continue. “Why do you bring in someone like that?” said the source, who was not authorized to speak publicly. “It says one thing: that they’re taking it seriously.” [Reuters]
During the height of the financial crisis, like when the shit was really hitting the fan, one thing that was considered a serious faux pas, perhaps even more so than giving out bonuses, was use of the corporate jet by Chief Executives. And not just for pleasure trips but for business, too. If anyone so much as even entertained the thought of boarding that thing for work purposes they’d be shot dead by something worse than a gun- public opinion. Now, though, enough time has passed that one would consider it acceptable to use the plane from time to time, perhaps even to expedite travel to weekend homes where one is still on the clock, right? WRONG, BITCHES! The Wall Street Journal‘s been watching you and is here to blow up your spot. Continue reading »
To avoid hotel costs, some S.E.C. investigators have shuttled between New York and Washington on Amtrak trains that leave around dawn and return the same day. The agency only recently started to again examine investment firms and public companies in some Southern states, after postponing reviews to avoid paying for plane fares. [Dealbook]
Have you been suspecting that your husband or wife may have involved him or herself in some insider trading? Are you worried that the Feds may know too? While there’s not much you can do short of getting out of town or finding a safe house and laying low, you can arm yourself with the knowledge of what’s in store and mentally prepare accordingly. Continue reading »
From time to time around these parts, we like to offer some pro-tips for those interviewing at various banks and hedge funds, given that each firm is unique and offers its own kind of curve balls. A successful (lunch) interview at Goldman Sachs, for instance, will require one to order within 30 seconds of the menu hitting the table; at Bridgewater, one must have his/her “views on God and abortion” ready. Today’s tip is for anyone potentially interviewing for a housekeeping job with Lenny Dykstra, who expect a demo of not only your cleaning skills but your skills as a masseur as well. Continue reading »
The good news is it has nothing to do with tax evasion. The bad news is the bank may have manipulated Libor rates. Continue reading »
