Hedge Fund Managers, Traders Charged in Galleon Trading Probe
By David Glovin, Bob Van Voris and Joshua Gallu
http://www.bloomberg.com/apps/news?pid=20601103&sid=ajLR2o1hcbTY
Nov. 6 (Bloomberg) -- U.S. prosecutors charged 14 people, including hedge fund managers, lawyers and an ex-Galleon Group employee, for using the methods of “drug dealers” and “common criminals” to profit on insider data from deals involving firms such as 3Com Corp. and Alliance Data Systems Corp.
The charges, brought as part of a wide U.S. probe of Galleon founder Raj Rajaratnam, bring the illicit profits in the case to as much as $53 million. Five of those whose cases were unsealed yesterday have pleaded guilty and are cooperating in the investigation, prosecutors said.
At the center of a new insider trading ring are Zvi Goffer, 32, a former Galleon employee who sought tips, and Arthur Cutillo, 33,(Ridgewood N.J.) an attorney at Ropes & Gray LLP and the ring’s key source of information, federal officials said. Goffer, founder of Incremental Capital LLC, paid tipsters including Cutillo for information on mergers and acquisitions, giving them pre-paid mobile phones so they could avoid surveillance, the U.S. said.
The defendants behaved like “common criminals” who took a “page from drug-dealer handbooks,” Manhattan U.S. Attorney Preet Bharara said yesterday at a press conference. The probe is focused on hedge funds and their sources of information, he said, adding that more arrests may be coming.
As with Rajaratnam, investigators used wiretaps, data- mining and surveillance to target the ring. Authorities have struggled to build cases against large institutional investors such as hedge-fund managers, who often seek to deflect regulatory queries about suspiciously timed bets by arguing they’re statistical flukes amid millions of trades.
http://www.bloomberg.com/apps/news?pid=20601103&sid=ajLR2o1hcbTY
By David Glovin, Bob Van Voris and Joshua Gallu
http://www.bloomberg.com/apps/news?pid=20601103&sid=ajLR2o1hcbTY
Nov. 6 (Bloomberg) -- U.S. prosecutors charged 14 people, including hedge fund managers, lawyers and an ex-Galleon Group employee, for using the methods of “drug dealers” and “common criminals” to profit on insider data from deals involving firms such as 3Com Corp. and Alliance Data Systems Corp.
The charges, brought as part of a wide U.S. probe of Galleon founder Raj Rajaratnam, bring the illicit profits in the case to as much as $53 million. Five of those whose cases were unsealed yesterday have pleaded guilty and are cooperating in the investigation, prosecutors said.
At the center of a new insider trading ring are Zvi Goffer, 32, a former Galleon employee who sought tips, and Arthur Cutillo, 33,(Ridgewood N.J.) an attorney at Ropes & Gray LLP and the ring’s key source of information, federal officials said. Goffer, founder of Incremental Capital LLC, paid tipsters including Cutillo for information on mergers and acquisitions, giving them pre-paid mobile phones so they could avoid surveillance, the U.S. said.
The defendants behaved like “common criminals” who took a “page from drug-dealer handbooks,” Manhattan U.S. Attorney Preet Bharara said yesterday at a press conference. The probe is focused on hedge funds and their sources of information, he said, adding that more arrests may be coming.
As with Rajaratnam, investigators used wiretaps, data- mining and surveillance to target the ring. Authorities have struggled to build cases against large institutional investors such as hedge-fund managers, who often seek to deflect regulatory queries about suspiciously timed bets by arguing they’re statistical flukes amid millions of trades.
http://www.bloomberg.com/apps/news?pid=20601103&sid=ajLR2o1hcbTY
Posts
14 comments:
Innocent until proven guilty. The media acts like a ham sandwich grand jury. They print the prosecutor's fully prepared press release with no input from the accused.
It is amazing the amount of fraud and incompetency there is on Wall Street. The little cheats will get away.
If federal charges were brought against them, hasn't a grand jury already indicted the defendants?
You can't believe what you read. The press is in the prosecutor's pocket. The press doen't do any real research, just repeat the press releases given to them. Don't underestimate the power of the government!! Support our neighbor. Pray for him and his family during this horrific time in his life.
To 7.26 ....
It's amazing how much fraud and incompetancy there is in ....
Government
Education
Construction
Medicare
Healthcare
the legal profession
Real Estate
etc
etc
etc
While not fraud, I can tell you I am a government worker with a six-figure salary. I'm generally worth every cent however, the other day, my supervisor asked me to do some data entry for our team. Yes, you read that right DATA ENTRY! I, as a taxpayer, am appalled that someone is making that much money to do data entry BUT, the government is in a hiring feeze and we can't hire an admin to do it nor can we contract it out.
That, to me, borders on fraud. Certainly incompetency on the part of my supervisors.
Whats the problem with helping out with some data entry? Do your union rules prevent you due to the usual 'its not my job' excuse? Require the government to hire a temp to do data entry while you waste taxpayers money perusing the internet all day? Perhaps your position could be eliminated. But..its the union.. so you are in no way concerned about whether you are productive or not since you cannot be fired due to seniority. THAT is fraud/
4:36 - WOW - you seem to have some very deep seated anger issues. How did your read into my post the things that you did.
No, I am not covered under a union contract and NO I DO NOT PLAY ON THE INTERNET ALL DAY. I am not within the union bargaining unit and can be terminated at any time.
You seem to miss the point -- I am a highly trained (MS, PhD) professional making six figures who does the work of 2 FTEs on a regular basis. I am highly productive and have received national I don't mind task work, as necessary but paying someone bundle of money is wasteful. Everyone is being asked to do administrative work -- it makes sense to pay a clerk $30K a year as opposed to paying some of us $100K+.
That's all I was saying.
4:36 - Where did you determine that 4:29 was union? You seem a little crazed and certainly off-base. The poster was only giving an example of extreme waste in government.
I've yet to meet a local, state or fed employee (union or not) who doesn't have the tag line "... and other duties as assigned" in their job description or contract.
Apparently 7;58 feels the need to wave her diploma(must be a her) around since her post has zero credibility. To accuse someone of anger who disagress with you is so typical of a democratic, teacher, union thug, or someone who sits on their side of the table. Apparently common sense wasn't one of the courses you earned your alleged degrees in. Or was it one of those online 'universities' HAHAHAHA!
7:01 - your comments just get more bizzare. Keep going -- it amusing.
Its obvious when someones intellect is lacking (7;58p aka 7:01a=same poster), they resort to 'waving their degrees' around in a lame attempt to gain respect. If in fact you were a 'professional' your actions would demonstrate that so you wouldn't have to put it on your name tag. Perhaps engaging brain before putting mouth in gear would be a more efficient way to get the message across. Until then your union will vigorously protect your job, no matter how incompetent you are.
12:23 - It's time for your electro-shock therapy now.
And again, no union. A little weak on reading comprehension?
Have a lovely day.
As usual, 12;23 cant take the heat. No union. no worries. mcdonalds will certainly hire you with all your degrees after you get the boot with your attitude. dont forget to supersize my fries.
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