Remember, back in April, when a bunch of UBS employees, were escorted out of the building and told not to come back, “pending an internal review into their conduct”? At the time we knew all four worked in operations and that they “were responsible for securities movements and payments,” and speculated that perhaps this was another RBS/Jim Glover-esque incident. Today, some other details have been filled in.
Reilly, 34, of Congers, N.Y., was sentenced today by Senior United States District Judge Warren W. Eginton in Bridgeport to 33 months of imprisonment, followed by three years of supervised release, for stealing more than $673,000 from UBS, his employer. According to court documents and statements made in court, from 1999 to April 2011, Reilly was employed at UBS in various positions. Most recently, Reilly worked at the Stamford office of UBS Securities, LLC, a wholly owned subsidiary of the parent company. From November 2007 through January 2010, Reilly held the position of director within the settlements group and, as such, was responsible for overseeing various activities, including managing and maintaining suspense accounts and making sure that accurate payments were made to and by UBS on a daily basis. From approximately February 2009 to April 2011, Reilly was responsible for approximately 84 fraudulent wire transfers that caused more than $673,000 of company funds to be transferred to his own personal accounts…Reilly used his position as a director in the settlements group to cause subordinates to make false journal entries and fraudulent wire transfers without them knowing that the entries were false and that the transfers were going to Reilly’s personal accounts. Today, Reilly was ordered to pay restitution in the amount of $673,447.47.
According to the sentencing memo, Reilly stole from the good people at UBS to feed a gambling addiction that often found him sports-betting on the job (by his own estimation, at the height of his problem Reilly would spend “8 hours gambling and 2 hours working”) and sometimes on cruise ships. Continue reading »
Are you a lady looking for love? Have you found relationships with men who haven’t done time in federal prison to be lacking a certain je ne sais quoi? Does the idea of being with a guy who has an elastic view of securities laws do anything for you? Then girlfriends, you are in for a treat. Roy Ageloff, a “former millionaire trader” who is finishing up an 11 year sentence for running a “vast pump and dump manipulation,” is schedule to be sprung free on Dec. 11, 2013 and he hopes you’ll be waiting for him. Interested? Here’s Roy, in his own words. Continue reading »
The convicted insider trader, who was previously scheduled to report to prison for an 11 year sentence at the end of the month, was granted a few extra days of freedom. He’ll now have ’til December 5 to dance like nobody’s watching. [WSJ]
This afternoon, Danielle Chiesi will report to a West Virginia prison for a 30-month stay, for her role in the Galleon insider trading case, wherein she passed valuable tips on to Raj Rajaratnam after the tech execs she worked closely with passed her a few of their own. Chiesi will be bunking at Federal Prison Camp Alderson (former home of Martha Stewart, where “women hide sugar packets and crackers in their socks and conceal larger items like eggs under their shirts”), and while Bloomberg reports that the former beauty queen/Newscastle analyst won’t be living alongside ‘sadistic crack-selling lesbian rapists‘ (“It’s more college campus than Chained Heat, the 1983 exploitation film about women in jail” we’re assured), there may still be a few aspects of prison life about which D-Chi (“they give each other nicknames,” says one former resident) will be less than thrilled. Such as: Continue reading »
At some point tomorrow, Raj Rajaratnam will be sentenced for the 14 counts of securities fraud and conspiracy he was found guilty on in May. The prosecution, which claims the Galleon founder netted “at least” $50 million in ill-gotten gains, has requested he go away for anywhere between 19 years and seven months to 24 1/2 years, while the defense, which argues Raj scored a mere $7.4 million, would prefer 6 1/2 to 8 years. To that end, the Rajaratnam team led by attorney John “How long are you going to suck [U.S. Attorney for the Southern District of New York] Preet’s teat” Dowd has 1) asked friends of Raj to send character letters to Judge Howell highlighting what a great guy he is and 2) made the bold statement that Rajaratnam is suffering from a “unique constellation of ailments ravaging his body” and that he will most certainly “perish if given a lengthy prison term.” To date, individuals vaguely and otherwise connected to the Galleon case have been sentenced to 2.5 years (Danielle Chiesi), 3 years (Emanuel Goffer), 4 years (lobster fiend) 10 years (Zvi Goffer). So! Continue reading »
Back in June, the lawyer for Winifred Jiau, expert network empress and accused insider trader, made a simple plea: “Put an end to this misguided prosecution,” Joanna Hendon said. “Send Ms. Jiau back to California, and to her dog.”
While the request might’ve played well with golden retriever lovers, the presiding judge didn’t care. He dragged things out another month, finding Jiau guilty over the summer and later on denying a request for acquittal or a new trial. Was Winifred the person you wanted to work with if you held an elastic view of securities laws and most certainly guilty of insider trading? Unquestionably: yes. Was she an individual who commanded sympathy, leniency or to whom you’d want to throw a bone? Those who benefited from her tips would be the first to tell you hell no.
In fact, she was bossy, she would cancel meetings at the last second, she would demand $300 gift certificates to the Cheesecake factory in one breath and a dozen Thanksgiving lobsters in the next, she would meet you for a pass off of material non-public information and tell you the shellfish you sent were Maine lobsters and she’d specifically request South African lobsters (even though she hadn’t) and then spit in your face and walk away and yes, sometimes you’d sit at your desk after she’d reamed you out over the phone for not giving her “the sugar” and fantasize about various ways you could kill her and make it look like an accident but having said all that: there’s a dog waiting for this lady and judge? She knows people who can make certain that these will be the first words you hear when you wake up and the last one’s you hear before you go to bed, for the rest of your life: Continue reading »
