RSS feedinsider trading
’All Know Holdings vs SEC
Securities and Exchange Commission Civil Action No 11 CV 8605.
Presented without comment, obv.
SEC FREEZES ASSETS OF FOUR CHINESE CITIZENS CHARGED WITH INSIDER TRADING
On December 5, 2011, the Securities
Introducing the Keep America Safe Job-Creating Congress ETF
CBS’ flagship 60 minutes programme carried a feature Sunday night that looked at whether Congressmen have been trading stocks based on insider information. It’s a theme that’s been well covered in the blogosphere but last night it reached prime-time.
SEC takes another crack at Gupta (and Rajaratnam)
The newly released SEC and FBI complaints against Rajat Gupta detail the alleged evidence of insider trading by the ex-McKinsey boss.
As the FT suggested Wednesday morning, Buffett’s investment in Goldman Sachs forms a key part of both cases,
SAC Capital referred for “unusually prescient” trades
The WSJ has got its hands on a list of the 18 “well-timed” SAC Capital trades referred by Finra or its predecessor NASD to the SEC between 2002 and 2011:
Finra, though, “described SAC’s history of well-timed trades as unusually prescient and particularly profitable”,
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.
Insider trading is definitely the new black
Bit of a stunner from the SEC on Thursday (emphasis ours throughout):
Washington, D.C., May 26, 2011 — The Securities and Exchange Commission today charged a former managing director of The NASDAQ Stock
Insider trading in the House…
… of Representatives, that is:
A previous study suggests that U.S. Senators trade common stock with a substantial informational advantage compared to ordinary investors and even corporate insiders. We apply precisely the same methods to test for abnormal returns from the common stock investments of Members of the U.S.
Further further reading
For the commute home,
- Can you predict who will get a Nobel in economics?
- The amazing story of JP Morgan’s hunt for Afghan gold.
- In defence of ETFs.
- What was that Goldman said about demand destruction?
- Peter Diamond is targeted.
[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,
Are you an insider trader?
That’s a question Reuters’ Matthew Goldstein asks in a special report published Wednesday on how the FBI’s Behavioral Analysis Unit (BAU) is helping the SEC investigate white collar crime.
From the report:
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,
Can dogs really smell cell phones?
Apparently so.
We ask as this was mentioned by Matthew Kluger, the M&A lawyer charged on Wednesday with earning $32m through insider trading. Garrett Bauer, a trader, was also charged with using MNPI — material non-public information,
Buffett’s “insider” trading policies and procedures
Courtesy of the WSJ; quote marks Warren’s own:
Some excerpts from Berkshire’s policies below (click to expand for a less fuzzy reading experience):
Does this mean David “I didn’t have any inside information”
[Galleon] SEC phones up Goldman ex-director charges
Highlights (lowlights?) from SEC insider trading charges against Rajat Gupta, a former Goldman director:
Specifically, Gupta disclosed to [Raj] Rajaratnam material nonpublic information concerning Berkshire Hathaway Inc’s (“Berkshire”) $5 billion investment in Goldman Sachs before it was publicly announced on September 23,
SEC probes ‘ETF-stripping’ by insider traders — FT
From the FT’s Kara Scannell on Thursday morning:
The Securities and Exchange Commission is investigating whether Wall Street traders are using exchange-traded funds as a means of disguising insider trading.
Insider trading investigations, continued
The insider trading investigations continue — and move beyond expert networks. From the FT on Tuesday:
Federal prosecutors have charged three hedge fund portfolio managers and a hedge fund analyst with insider trading.
A customizable client compliance programme
Watch out — here comes a late entrant for euphemism of the year.
The FBI arrested four people on Thursday in connection with alleged insider trading, following a further arrest last month. Two of those arrested were employees of Primary Global Research,
Insider trading frat dorks
An announcement from the SEC on Wednesday, emphasis (and a bit of chuckling) ours:
Washington, D.C., Dec. 8, 2010 — The Securities and Exchange Commission today charged a Baltimore-based business consultant and his uncle with insider trading in the stock of two biotechnology companies based on material,
SEC charges doctor with insider trading
If you need something to distract you from all the hype regarding the elections and QE2, here is a nominee for the category of unusual insider trading cases (emphasis ours):
Washington, D.C., Nov. 2,
Missing in action — 80% of SocGen trades [updated]
And we were wondering how Jerome Kerviel got away with it… Update: It’s a bit unfair to cite Kerviel on this one, actually — it just concerns misreported transactions in the UK branch, not fraud against the French parent.
Insider trading: go for it, Senator
A hat tip to Pragmatic Capitalism for posting an intriguing paper about the ability of US congressmen to trade on non-public information — and get away with it.
Under current law, the paper says, “it is unlikely that Members of Congress can be held liable for insider trading.”
SEC charges 35-year Deloitte veteran with insider trading
This is increasingly looking like the worst of times for professional services firms.
Management consultants were more than a little shaken when the investigation into alleged insider trading at Galleon ensnared a former McKinsey director.
What is it with SocGen types and alleged market abuse?
Jean-Pierre Mustier, SocGen’s former head of investment banking and the man who called Jérôme Kerviel a liar, has been fined for insider trading by the French market regulator.
Background: Mustier quit SocGen in August 2009 after France’s Autorité des marchés financiers opened proceedings against him,
Market upheaval should not be the new black, SEC says
Volatility might be the new black, but regulators are none too impressed with market upheaval of the May 6 flash crash persuasion.
In a speech on May 24, SEC commissioner Luis Aguilar deplored “the perils of fragmented regulation”
SEC Charges Pequot Capital and CEO Samberg with insider trading
It’s been a busy week for financial regulators, and a mixed one — at best — for hedge funds.
On Thursday, the SEC said it had charged Pequot Capital Management and its chairman and chief exec Arthur Samberg with insider trading in Microsoft shares.
Evil speculators vs Mickey Mouse
Breaking news, via the SEC, from the home of Mickey Mouse on Wednesday (emphasis ours):
The SEC alleges Bonnie Jean Hoxie — an administrative assistant to a high-level Disney executive — and her boyfriend Yonni Sebbag sent anonymous letters in March 2010 to more than 20 hedge funds in the U.S.
Taiwan makes it harder to prosecute insider trading
Would-be insider traders located in either London or New York — both have which have been aggressively prosecuting alleged securities misdemeanors — may want to consider moving to Taipei.
According to a report by the China Economic News Service (and a similar story in the China Post),