Results tagged “insidertrading”

Daily Intel noticed how Robert Moffatt, the IBM executive arrested in the insider trading ring with Galleon Group head Raj Rajaratnam, seems like a fun guy. According to Bloomberg News, Moffatt, once in line to be future IBM CEO, Moffatt would start meetings with "This Day in History" trivia and utilized costumes to boost morale: "He once told workers in the Raleigh office that if the division turned a profit in one quarter, he would wear a kilt at a company event. When it did, he kept his promise. He once dressed up in a sumo-wrestler suit at a conference."

To no one's surprise, traders at the Galleon Group have been working on their resumes and calling their lawyers, after the hedge fund's founder Raj Rajaratnam was arrested on insider trading charges last week. However, he was in the office yesterday (out on $100 million bail) and also offered a letter to employees, friends and clients: "As I am sure you understand, I am not able to respond in detail to the charges recently brought against me. But let me be clear: they are, without exception, entirely baseless. I am innocent and will vigorously defend myself and our firm."

The upside of being a billionaire when you're accused of insider trading? You can post the $100 million bail! Hedge fund founder Raj Rajaratnam, who was arrested on Friday after feds said he and five others shared inside information and tips to make $20 million, posted the bail on Saturday. The NY Times says that he's expected to be at his hedge fund's offices today to address his employees.

A hedge fund founder and five other people were arrested in what the federal authorities say is the "biggest insider trading scheme ever involving a hedge fund" (NY Times) and the "biggest insider-trading ring in a generation" (Wall Street Journal). Those involved allegedly made $20 million on inside information about stocks like Hilton, IBM, Google and Advanced Micro Devices.

For better and for insider trading secrets: The Lehman Brothers trader arrested after it was discovered he was feeding friends and clients tips about upcoming mergers apparently got his information from his wife—not that she knew it. Matthew Devlin would "monitor" his wifee's travel, since she worked for a PR firm that handled press for "high profile mergers and acquisitions," and figured out what deals were happening. Devlin told one friend who benefited from tips and who was dating a Playboy playmate, "[Your girlfriend] may be amazing at some things, but none of them are like the golden goose"—as in his wife Nina (pictured)! Nina Devlin's lawyer said, "She was completely unaware that confidential information about her job was being used as the basis for securities trading" (we expect him to announce divorce paper next!). Devlin, who moved on to Barclays after Lehman's collapsed, has been suspended; he and his co-horts allegedly made $4.8 million in profits.

A U.S. District Court Judge sentenced one-time Credit Suisse investment banker Hafiz Muhammad Zubair Naseem to ten years in prison for insider trading, stating that some Wall Street professionals were not getting the picture of the seriousness of the crime. While working at Credit Suisse's Global Energy Group in Manhattan, Naseem fed insider information to a partner in Pakistan, who used the tips to illegally amass almost $8 million in profits.