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’Editorialising, SEC-style
Maybe we are making too much of this, but when the SEC is on its 30th or so figurative lynching related to the Galleon rat case, does it really need to juice up its press releases in the hope of a tabloid pickup?
From the SEC IMMEDIATE RELEASE
From the actual SEC complain,
Rajat Gupta surrenders to the Feds
Rajat Gupta, former boss of McKinsey and Goldman Sachs board member, on Wednesday morning surrendered to the FBI, pending criminal charges for insider trading.
This would be a big scalp for the Feds — bigger even than that of Gupta’s friend, Raj Rajaratnam,
Chaat, ola leaves and the curious case of Raj Rajaratnam
Raj Rajaratnam has given his first interview since being sentenced to 11 years in prison for insider trading. Like the trial itself, it’s an odd mix of money, family, cop cliches and immigrant networks.
Raj Rajaratnam sentenced to 11 years for insider trading
On 11 May former Galleon boss Raj Rajaratnam was convicted on all 14 counts of alleged securities fraud and conspiracy. He was in court in New York on Thursday to receive his sentence:
RTRS – US JUDGE SAYS INTENDS TO SENTENCE FUND MANAGER RAJ RAJARATNAM TO 11 YEARS IN PRISON FOR INSIDER TRADING – COURT HEARING
This is among the longest sentences ever given for insider trading.
Wall Street crime, New Yorker edition
George Packer has written nearly 11,000 words on financial crime for this week’s New Yorker. Like most New Yorker articles, it’s an exercise in curious ambivalence and worth a read if you have a spare half hour.
[Galleon] Raj Rajaratnam: the sentencing book
Q: What sentence awaits Raj Rajaratnam?
A: You tell us. Put your best guess in the comments below and the winner receives a mystery prize. (So mysterious we don’t know what it is yet.)
Official guidelines suggest a total stretch from 15.5 to 19.5 years (not per count as some TV stations have been saying).
[Galleon] Raj Rajaratnam: guilty of all charges
After a deliberation length that would make Henry Fonda blush, Raj Rajaratnam has been found guilty on all 14 counts of conspiracy and securities fraud. Bernie could now have a cell mate.
From the FT,
The trouble with defining insider trading
Jonathan Macey, a law professor at Yale University, has an op-ed in Tuesday’s WSJ arguing that the SEC’s definition of insider trading is too strict and at odds with Supreme Court precedent. (Hat tip Stacy Marie-Ishmael.)
Using the ongoing Galleon case as an example,
Further further reading
For the commute home, where the carry trade means helping your better half unload the car in exchange for first dibs on the remote,
- The FT visits Bernie Madoff.
- Where Galleon allegedly made its money.
[Galleon] Mr Wiretap
An unexpected twist in the Galleon insider trading case.
From Reuters on Tuesday evening:
- SEC FILES CIVIL INSIDER TRADING CHARGES AGAINST DAVID SLAINE, A FORMER HEDGE FUND PORTFOLIO MANAGER – NY COURT DOCUMENT
- SLAINE ALLEGEDLY USED INSIDE INFORMATION FROM MITCHEL GUTTENBERG,
[Galleon] Raj Rajaratnam, Danielle Chiesi indicted
Raj Rajaratnam, founder of the Galleon hedge fund, and Danielle Chiesi – a portfolio manager at New Castle Funds LLC — have been indicted on charges related to the US government’s sweeping investigation into an alleged $20m insider trading ring.
[Galleon] Rajaratnam: ‘I am no Madoff’
From Big Raja’s latest bail modification letter, posted by his lawyers on Monday morning (emphasis FT Alphaville):
Mr. Rajaratnam has carefully worked with Galleon to wind down its business, to take care of the Galleon employees negatively affected by the Government’s sudden arrest of Mr Rajaratnam and its related press conferences,
Galleon founder attacks wiretap
Raj Rajaratnam, founder of the Galleon hedge fund group at the heart of an insider trading scandal, on Tuesday attacked prosecutors’ use of court-authorised wiretaps as a violation of his constitutional rights and questioned the credibility of a key witness.
[Galleon] Raj Rajaratnam denies allegations of insider trading
Raj Rajaratnam, the billionaire founder of the Galleon hedge fund accused by the US Securities and Exchange Commission of insider trading, has rejected the charges against him.
In a court filing on Tuesday,
[Galleon] alpha quadrant
The aim of this document is to show the real life application of the ‘Style Analysis’ feature applied to a hedge fund claiming delivering alphas. We will show how to analyze a fund in terms of its alpha and sector selection skills.
Galleon case triggers more arrests
US prosecutors on Thursday intensified their crackdown on Wall Street insider trading, revealing criminal charges against 14 people which are related to the case last month against Raj Rajaratnam, founder of the Galleon hedge fund,
[Galleon] Zvi Goffer et al – new readers start here
Some 21 individuals and firms are now facing — or have faced — court action stemming out of the investigation into an alleged $20m insider trading ring.
Here’s the re-re-revised complaint from the SEC with details on the sprawling investigation. Get yourself a coffee or something – it’s 50 pages long.
[Galleon] More stoolies in the Rajaratnam-Goffer case
The complaint documents associated with the latest swoop on those allegedly dealing inside make it abundantly clear the FBI has made very extensive use of co-operating witnesses.
In particular, there is bound to be speculation on the identity of someone referred to as “CS-1,”
[Galleon] Analysts, traders, hedgies, attorneys and other Galleon-accused
In the aftermath of the a fresh series of arrests against individuals allegedly involved in a $20m insider trading ring, the SEC released details of an amended complaint on Thursday.
Those featured in the complaint are a motley crew of hedgies,
[Galleon] Great, sinking ship – more arrests in Galleon case
Early in New York on Thursday morning, CNBC reported that seven people had been arrested in what was described only as “an ongoing insider trading case related to hedge funds.”
It has since become clear that the arrests are linked to the allegations against Raj Rajaratnam and the Galleon hedge fund.
Galleon fears raised in 2001
Concerns about the business practices of Galleon hedge fund founder Raj Rajaratnam and his associates were raised inside JPMorgan Chase as far back as 2001, according to internal memos seen by the FT. Rajaratnam,
Galleon paid banks millions for `edge’
The Galleon hedge fund at the centre of an insider trading scandal paid hundreds of millions of dollars a year to its Wall Street banks and in return regularly received market information that would not have been disclosed to most investors.
Former AMD chairman reportedly linked to Galleon probe
The executive at Advanced Micro Devices who alleged shared information with a defendant in the Galleon insider dealing case was the group’s former chairman, Hector Ruiz, according to the Wall Street Journal.
[Galleon] Galleon rat report
Okay, okay, that’s just a lame little joke.
Call ‘em what you will — stoolies, narks, informer, a grass, co-operative witnesses. Either way, FT Alphaville does not condone illegal activity in any form.
Galleon judge pushes SEC
A federal judge’s ruling could force the government to tip its hand early to defendants in the burgeoning Galleon Group insider-trading case, reports the WSJ. On Monday, US district judge Jed Rakoff told the SEC to be ready to begin the civil insider-trading trial in five months.
[Galleon] A closer look at Galleon’s returns
With Galleon-gate now one week old, bloggers have been poring over the fund’s annual returns.
The Pragmatic Capitalist for one, who has posted the Galleon numbers on his blog, smells a rat.”Gauging from the returns,”
Galleon sinks as informant surfaces
Galleon Group is winding down all its hedge funds just days after billionaire Raj Rajaratnam, its founder and president, was charged along with five others for insider trading, sparking investor withdrawals.
[Galleon] Galleon liquidating itself
Galleon co-founder Raj Rajaratnam sent this letter to clients on Wednesday:
Dear Galleon Employees, Clients and Friends,
I have decided that it is now in the best interest of our investors and employees to conduct an orderly wind down of Galleon’s funds while we explore various alternatives for our business.
Galleon moves assets into cash
Galleon Group, the hedge fund whose founder and president, Raj Rajaratnam is at the centre of insider trading charges, is rapidly liquidating its investments in expectation of a wave of investor redemptions,
[Galleon] The Galleon index
Wall Street, as anyone familiar with the failure of Long Term Capital Management will know, treats a teetering hedge fund as carrion crows do a wounded animal.
And with Galleon investors rushing to withdraw money from the scandal hit fund (the WSJ reports about $1.3bn of its $3.7bn of assets having been pulled) the feeding frenzy has begun.