prison

Rajat Gupta, the Goldman Sachs director who waited but 23 seconds after a Goldman board meeting to call hedge fund manager Raj Rajaratnam with material, non-public information, has lost his bid to stay out of jail. Read more »

Five former aides to Bernard Madoff who spent decades working for his firm were found guilty of helping run the biggest Ponzi scheme in U.S. history, a $17.5 billion fraud exposed by the 2008 financial crisis. The three men and two women, hired by Madoff with little financial experience, were convicted on all counts. The defendants failed to persuade a federal jury in Manhattan they were ignorant of the fraud despite being part of the inner circle at his New York-based firm…The defendants are Annette Bongiorno, who ran the investment advisory unit at the center of the fraud; Joann Crupi, who managed large accounts; Daniel Bonventre, the ex-operations chief of Madoff’s broker-dealer; and computer programmers George Perez and Jerome O’Hara, accused of automating the scam as it grew rapidly in the 1990s. [Bloomberg]

  • 18 Dec 2013 at 5:57 PM

SAC’s Steinberg Is Going To Prison

This probably does not come as any more of a surprise to him than it does to anybody else, given (a) that prosecutors are batting 1.000 on insider-trading cases these days, and (b) that he passed out as soon as he saw the jury walk into the courtroom. Read more »

If various sources are to be believed, Raj Rajaratnam is having the time of his life in prison, where he’s “reigning like a king,” “has a very delightful guy doing all sorts of stuff for him — sort of like a ‘manservant’,” enjoys a private en suite, balcony, and adjustable bed, and gets along smashingly with his fellow inmates, who can’t help but notice how downright svelte he’s become. All that’s a good thing, as we’ve just received word he won’t be leaving any time soon. Read more »

He reported to a federal prison camp in Taft, Calif., in 2004. It was during his 22 months there that he decided to write his memoirs. Incredibly, his cellmate was Tommy Chong, of Cheech and Chong, who was serving a nine-month sentence for selling drug paraphernalia—bongs in particular. As Chong describes it, the Taft Federal Correctional Institution would beat many Manhattan hotels for comfort. He says Belfort’s arrival “was like Elvis coming to jail” and that his roommate spent his days playing tennis and backgammon, cleverly hiring other inmates to do his chores for him. “We were part of the elite gang,” Chong says, adding that for a stretch they ate meals “Goodfellas-style” with another famous inmate, the PGA Tour caddie Eric Larson, who was serving time related to drug charges. Larson “worked in the garden, and he grew these fresh, delicious vegetables, and he used to cook them,” Chong says. “We had these beautiful vegetarian, healthy meals every night, and Jordan was part of the gang. We had a nice little hierarchy there, intelligent famous guys hanging out together.” [BusinessWeek]

  • 24 Jun 2013 at 12:31 PM

Raj Rajaratnam Not Leaving The Big House Anytime Soon

On the one hand, it’d be hard to argue that the former hedge fund manager doesn’t want to get out of the correctional facility he’s been in since December 2011; on the other, let’s not forget that prison is said to agree with him and that he not only is he in “good spirits,” but looks better than ever. Read more »

One of the country’s most notorious financial scandals came to a protracted legal conclusion Friday as ex-Enron Corp. CEO Jeffrey Skilling — already in prison for his role in the once-mighty energy giant’s collapse — was resentenced to 14 years as part of a court-ordered reduction and a separate agreement with prosecutors. Skilling has been in prison since 2006, when he was sentenced to more than 24 years by U.S. District Judge Sim Lake. But an appeals court vacated his prison term in 2009, ruling that a sentencing guideline was improperly applied. That meant a reduction of as much as nine years. However, Skilling’s resentencing was delayed for years as he unsuccessfully sought to overturn his convictions, including appealing to the U.S. Supreme Court…The Justice Department said that in an effort to resolve a case that’s gone on for more than 10 years, it agreed to an additional reduction of about 20 months as part of a deal to stop Skilling from filing any more appeals. [AP]