prison

  • 21 Nov 2014 at 3:12 PM

Mathew Martoma Is In Miami

martomaUnfortunately, this is a business, not pleasure trip: yesterday marked Day 1 of 3,285 of his sentence for orchestrating the largest insider trading scheme ever. Read more »

What makeover show in hell?

What makeover show in hell?

Remember Aubrey Lee Price? Georgian banker who screwed investors out of millions, faked his own death, was on the lam for about 18 months, during which time he set up a grow house in Florida and transformed his look from southern banker to the love child of James Lipton and Dave Navarro? Got caught when some local cops pulled him over for having illegally tinted windows? Today he was sentenced to 30 years in prison and will also be ordered to pay approximately $46 million in restitution. How will he come up with the cash? Oh, he’s got a plan. Read more »

If the previous odds of a considerable stay in jail didn’t deter you before… Read more »

  • 05 Sep 2014 at 1:42 PM

Mathew Martoma Is Still Going To Jail

Despite his lawyer’s arguments that 1) The government’s key witness can’t be trusted and 2) That whole business with the fake Harvard Law transcripts made him look bad in the eyes of the jury. Read more »

Last August, a report came out claiming that Raj Rajaratnam was having the time of his life in prison. As someone who went to great lengths to avoid going to jail (not so much by staying on the right side of securities laws but by paying a high-priced lawyer to accuse people churning out supposedly slanted coverage of his client of “sucking [U.S. Attorney for the Southern District of New York] Preet Barhara’s teat“), this revelation came as a surprise. As a hedge fund billionaire who’d grown used to a luxurious lot in which he paid many people to keep him comfortable and content, there was an expectation that life on the inside would come as a rude awakening. And, yet, the report claimed that Raj was “reigning like a king,” “doing his time in the lap of luxury compared to other inmates,” with a set-up that included:

  • A private toilet
  • A shared balcony
  • An adjustable bed
  • “A very delightful guy doing all sorts of stuff for him– sort of like a ‘manservant'”
  • An inmate who cooks for him using a microwave when he “doesn’t want to hoof it to the dining hall”

Unfortunately for anyone anticipating doing time on the inside, all of these perks apparently come at a cost, according to a guy who claims Raj had to pay a number people off to arrange the manservant and en-suite, among other things. Read more »

Remember the group of old high school buddies, who put Colonia High Class of ’88 on the map when they were criminally and civilly prosecuted for an “insider trading scheme focused on pharmaceutical and medical technology stocks”? They’ve all received punishments that range from fines to prison time and that’s in spite of the fact that:

  • The phrase “I have some vacation pictures for you” was a cover for payments made to tippers
  • Deals were referred to in code as the “Fat Man,” while updates on the statuses of deals were communicated with lines like “fat man has a friend” and “fat man walks alone”
  • One of the men assured everyone that even if the Securities and Exchange Commission did catch on, they wouldn’t have the resources to do anything about it. (To wit: “The SEC’s got to pick their battle because they have a limited number of people and huge numbers of investors to go after.”

And yet! Read more »

  • 17 Jun 2014 at 3:23 PM

Civil Penalty Watch ’14: Rajat Gupta

Ex-Goldman Sachs board member Rajat Gupta reported to prison earlier today for, among other things, being unable to wait more than 23 seconds to spill material non-public information to now-known insider trader Raj Rajaratnam. Also, he needs to come up with about $24.9 million, if anyone’s feeling generous. Read more »