Insider Trading

[joelnwil]

http://www.marketwatch.com/story/gal...9-10-16-112300

"Galleon Group's billionaire founder, Raj Rajaratnam, was charged Friday in a sweeping, $17 million insider-trading case, according to court documents filed in Manhattan by federal prosecutors and the Federal Bureau of Investigation. Rajaratnam and five others allegedly involved in the scheme have been arrested.

Galleon it was "shocked" by the arrest but stressed that it continues to operate and is "highly liquid." "We had no knowledge of the investigation before it was made public and we intend to cooperate fully with the relevant authorities," the hedge-fund firm added in a statement.

The other defendants are:
* Rajiv Goel, an employee at Intel Corp.
* Robert Moffat, a senior vice president at IBM Corp.
* Anil Kumar, a director at the consulting firm McKinsey & Co.
* Danielle Chiesi, portfolio manager at $1 billion hedge-fund firm New Castle Partners
* Mark Kurland, a senior managing director and general partner at New Castle, which was the equity hedge-fund group of Bear Stearns Asset Management."

Let's hope that they all go to jail for a long time. They have been caught on wiretap. Galleon says it was "shocked", but I seriously doubt that they did not know.

"Rajaratnam was considered a leading investor in the technology sector, generating big returns. The Securities and Exchange Commission, which filed civil charges against Rajaratnam and the five other defendants on Friday, questioned the source of the gains. "What we have uncovered in the trading activities of Raj Rajaratnam is that the secret of his success is not genius trading strategies. He is not the astute study of company fundamentals or marketplace trends that he is widely thought to be," said Robert Khuzami, director of the SEC's Division of Enforcement.

"Raj Rajaratnam is not a master of the universe, but rather a master of the Rolodex," Khuzami added in a statement. "He cultivated a network of high-ranking corporate executives and insiders, and then tapped into this ring to obtain confidential details about quarterly earnings and takeover activity.""

It was also noted that Raj Rajaratnam was a major contributor both to Hillary Clinton and to a front group for the Tamil Tigers. Interesting combination.

[xoxoxoBruce]

Let's hope that they all go to jail for a long time.

And bamboo slivers, don't forget bamboo slivers under the fingernails.

They have been caught on wiretap. Galleon says it was "shocked", but I seriously doubt that they did not know.

Shocked that he (they) got caught, maybe? Getting away with it for a long time, and thinking from the outside it would appear to be sort of casual relationship, difficult to detect/prove wrong doing, made him complacent?

[glatt]

I saw this thread and hoped it would have some good tips...

[ZenGum]

$17 million? Ametuers.



In similar news, the head of the Australian Wheat Board has just been put on trial over the transport kickbacks scheme, in which the AWB handed $300,000,000 to Saddam Hussein as (fake) "trucking fees" to make sure they got the contract, in gross violation of the sanctions at the time. The CEO claims he was "unaware" of the payments.