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How To Tell If You're Starring In A Poorly Shot Video About Insider Trading

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You're an investment professional and have been making some trades that would fall under the umbrella of 'securities violations' for some time. Your colleague and co-conspirator has been acting a little weird (whenever you talk to him, he's been asking detailed questions about how exactly you've obtained inside information, what you did with it, etc) and you start to wonder if perhaps he's flipped, is cooperating with the government and has been recording conversations with you in order to get a better deal. If he's started wearing a cravat and asking you to lean in "closer, closer" while chatting or to slow dance in the office kitchen, you may want to back slowly out of the room and lay low for a while.

David Slaine, the stock picker turned stoolie whose trail led investigators to hedge-fund titan Raj Rajaratnam, spent months making secret videos of friends and colleagues allegedly engaged in an insider-trading scheme. Slaine affixed hidden video cams to his hat, cravat and briefcase, helping investigators build their case against Zvi Goffer, an ex-Galleon trader, his brother Emanuel Goffer, and his partner Michael Kimelman.

Far from dramatic, the videos show shots of walls, a bookcase, Slaine's checkered shirt and people's foreheads, according to sources familiar with the tapes. While some tapes are expected to be entered as evidence, they will undoubtedly reveal the trickiness of surveillance when using informants. For instance, the government may show a videotaped conversation between Slaine and Goffer eating at a diner, but mainly for the audio, because the video only shows the corner of Goffer's face, said a person close to the case.

Octopussy's Video's Less Than Stellar [NYP]


Doctor Who Tipped Off SAC Manager Wasn't Conspicuous About His Wealth Except When He Was Telling Strangers On Planes About All The Fancy Hotels And Limo Rides Insider Trading Afforded Him

As you may have heard, in addition to the salary he was paid by the University of Michigan, Dr. Sidney Gilman made about $100,000/year through his side-gig advising "a wide network of Wall Street traders."  That network included included Mathew Martoma, recently charged with running “the most lucrative insider trading scheme ever,” based on the information he received from Gilman, who made it a habit of leaking highly confidential information to the former SAC Capital employee. While most people that engage in fraud can't help but spend their ill-gotten gains in a flashy way that attracts unwanted attention (expensive cars, private jets, chinchilla fur coats) the Times reports that Sid Gilman's supplementary income "was not readily apparent in his lifestyle in Michigan." For instance, no second home and no bragging to his colleagues about his life on Wall Street. Still, on at least one occasion, the doctor couldn't help but let the underage girl sitting next to him on a flight home know that she was in the presence of a BSD.

Bristol-Meyers Squibb Employee Conducted Numerous Internet Searches Re: How To Not Get Caught Insider Trading Before Engaging In Insider Trading

Which, it turns out, were not very helpful. Mr. Ramnarine, who served as assistant treasurer for capital markets at Bristol-Meyers Squibb from June, 2011, was charged in New Jersey federal court with three counts of securities fraud related to alleged insider trading in the stocks of three companies Bristol-Meyers was targeting for acquisition. According to the complaint, about a week before some of the alleged trading, Mr. Ramnarine opened up Yahoo on his office computer in Princeton, NJ and entered a flurry of searches, including “can option be traced to purchaser,” “can stock option be traced to purchase inside trading,” “insider trading options traceillegal [sic].” Mr. Ramnarine also looked at web sites and articles discussing insider trading laws and ways to avoid insider trading violations, and even downloaded press releases on insider trading from the office of the Securities and Exchange Commission, according to the complaint. Lessons In How Not To Insider Trade [Deal Journal] US v. Robert Ramnarine [Criminal Complaint]