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Guy Who Snacked On Post-It Notes Containing Inside Information Got Off Fairly Easy

Minus the indigestion.
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Sure, he had to cooperate with the government. But all things considered? Frank Tamayo, AKA the best liaison between a source of information and a person executing on that information EVER, did pretty well for himself with regard to not going to prison and not paying a fine for his crimes.

...Tamayo was a middleman in a scheme involving Steven Metro, a former law clerk at Simpson Thacher & Bartlett, and broker Vladimir Eydelman, the SEC said in a statement on Monday. In exchange for cooperating in the agency’s ongoing case against the two men, Tamayo’s penalty was limited to disgorging $1 million in ill-gotten gains and agreeing not to violate anti-fraud and securities laws, the SEC said. Tamayo would meet Eydelman near a clock in New York’s Grand Central Terminal and show him napkins or Post-It notes with the name or stock symbol of a company whose shares were about to go up, according to the SEC’s March 2014 complaint. On at least one occasion, he then ate the note, the SEC said.

Tipster Who Ate Post-It Notes Avoids Fine in Inside-Trading Case [Bloomberg]


Rajat Gupta Defense Team: You Think Our Client Would Pass Inside Information To A Guy Who Didn't Even Have The Decency To Invite Him To His Birthday Party?

What motivates people to share material non-public information with a person they know will use it for profit? For some, it's simply about greed. For others, it's about the thrill. For yet others, it's about pillow talk. For Rajat Gupta, the McKinsey director currently on trial for allegedly passing inside information to Raj Rajaratnam, it's about friendship, according to prosecutors who are trying to make the case that Raj and Rajat were the best of buds and that's what buds do. They they back each other up when they drunkenly hit on the girlfriend of the wrong guy at the bar, they stand up as best men at each others' weddings, they pick up the phone and say "Buy GS" when they know for a fact Warren Buffett is about to do so, too. And although attorneys representing Gupta don't deny the two were thick as thieves, they argue that while perhaps back in the day Rajat would have provided useful information to Raj, there is no way he would have done so after Big R twice violated the bonds of friendship. In the first instance, there was this: Defense attorneys have argued that Messrs. Gupta and Rajaratnam had a falling out in fall 2008 after Mr. Gupta lost his entire $10 million investment in a fund managed by Mr. Rajaratnam and therefore wouldn't have passed along inside information...The precise timing of their relationship's deterioration could be crucial in proving Mr. Gupta's guilt or raising doubts in the minds of jurors about whether he conspired to commit securities fraud...Defense attorneys have said Mr. Gupta was furious at Mr. Rajaratnam in the fall of 2008, when Mr. Gupta's $10 million investment in a fund called Voyager Capital Partners Ltd. evaporated. According to Mr. Kumar's testimony, Mr. Gupta felt Mr. Rajaratnam's negligence had allowed Voyager to collapse. And then this happened:

Informant's Assistance On Insider Trading Case Slightly Undone By Telling "Series" Of Lies To Government

On the one hand, Roomey Khan's assistance as a cooperating witness was "extremely substantial." On the other, she seems to have told between 1 and 100 lies to government officials.