Galleon Busted In $20 Million Insider Trading Case
Billionaire Raj Rajaratnam was arrested last night, according to David Faber, after a $20 million insider trading complaint was filed against him by the SEC. The action included the participation of the FBI. Rajaratnam is the founder of $3 billion hedge fund Galleon Management, located on the 34th floor of 590 Madison Avenue. Per the complaint, Rajaratnam was involved in illegal activity in the stocks of Polycom, Hilton Hotels, Google, Clearwire, AMD, and Akamai among others. Zero Hedge will provide the full SEC disclosure once we get it.
An overview of Galleon is provided below.
The top 20 current holdings of the fund are provided as well. The fund seems to be on the tech/fin momo train big time.
And here is the full complaint by the US Attorney's Office. If this is the track that the SEC will be pursuing, it is now time for the SEC to crack down on a whole variety of expert netoworks, in line with disclosure previously by Zero Hedge.
Full Complaint (8MB .pdf)
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on Fri, 10/16/2009 - 09:45
#100792
Raj must not have bought his GS/Obama insurance. Let this be a warning to all the crooks who refuse to "play ball."
on Fri, 10/16/2009 - 09:59
#100802
He must have pissed off someone at GS
on Fri, 10/16/2009 - 10:01
#100806
When will the primary dealers, Fed and Treasury be arrested on insider trading?
Oh...
on Fri, 10/16/2009 - 10:03
#100808
Or pi$$ed off JPM? Dylan Ratigan's column yesterday singled both JPM/GS as Kings of Derivatives, and thus, easily the most profitable. Considering where Wall Street gave their money in '08, it would be very interesting to follow this $ trail from Galleon Mgt.
on Fri, 10/16/2009 - 10:45
#100858
They will preempt that.
There’s always room for Goldman Sachs (at the SEC)
http://trueslant.com/matttaibbi/2009/10/16/sec-unit-hires-ex-goldman-sachs-worker-as-chief-operating-officer/
on Fri, 10/16/2009 - 10:04
#100810
Amazing job SEC, avoiding all the Golden Slacks roadkill to target hedgefund Galleon.
on Fri, 10/16/2009 - 10:48
#100860
Agreed. This is a classic example of the sacrificial lamb being brought to slaughter so that the angry public (aka wage slaves) will be sated enough to put down their pitchforks and torches and return to the fields to finish the annual harvest.
on Fri, 10/16/2009 - 11:16
#100888
Managing the news headline cycle so that their new CFO isn't the top story.
on Fri, 10/16/2009 - 12:22
#100987
BTW, did everyone notice that this complaint involves trades done between Jan 2006 and Jan 2007?
At this rate, the Ponzi of 2008-2009 won't even reach their radar screens until 2011-2012.
All clear GS and friends, full speed ahead.
on Fri, 10/16/2009 - 10:06
#100813
A $20 million case against a $3B hedgefund?
Yes does look like someone went off the reservation.
on Fri, 10/16/2009 - 10:11
#100818
There's never just one cockroach in the kitchen.
Why would a billionaire risk so much over 20 million? ...or perhaps this is how you become a billionaire in the first place.
on Fri, 10/16/2009 - 10:11
#100819
Another one of the 'stellar' outliers I've harped on periodically on this site. With so many intelligent folks chasing returns, how do you think some of these superstars make their outsized gains??? Access to the new issue desks (doesn't take much talent to constantly flip a new stock/bond up ~4% in a day to generate them) and outpacing their peers with grey area info generation if not outright insider trading. The SEC has a gold mine here if they wanted to truly help the health of the country & capital markets. If not, let crony capitalism rule as in Russia.
on Fri, 10/16/2009 - 10:18
#100826
Seriously, how would someone be able to perform insider trading on so many disparate companies. Sounds like crap.
on Fri, 10/16/2009 - 16:23
#101319
Is this really a serious question????
You've never heard of interlocking directorates?
You're unfamiliar with the BoD of AIG, JPMorgan, GS, Morgan Stanley, Citi????
I'll pass on this question....
on Fri, 10/16/2009 - 10:21
#100830
Looks like Storch's first day on the job has been productive.
on Fri, 10/16/2009 - 10:49
#100861
Maybe the SEC can turn him into a canary and let him sing.
The question remains can they even decipher a high pitch?
on Fri, 10/16/2009 - 11:31
#100911
What did Raj do to piss off the squid?
Apparently Raj could not get his "people" plugged into the cushy SEC jobs fast enough.
on Fri, 10/16/2009 - 11:37
#100925
CNBC reports on this every 15 min. Great job.
on Fri, 10/16/2009 - 11:39
#100928
You guys HAVE to read the complaint in detail. It's unbelievable the number of people involved in this.
This is a 3 year investigation with about 2 years worth of phone-tapping of Raj's lines. This is NOT a few people going down... a *lot* of folks are going down here. This is just the first chapter.
on Fri, 10/16/2009 - 11:51
#100949
Will this hedge fund have to liquidate positions?
on Fri, 10/16/2009 - 11:55
#100953
Anil Kumar the McKinsey director from Palo Alto is named in the suit as well. Couldn't happen to a ... more colorful character. It makes me smile.
on Fri, 10/16/2009 - 13:55
#101101
if a pee-on hedge fund is up to this, imagine what the secretive, intricate, corrupt web of GS is up to.
on Fri, 10/16/2009 - 14:02
#101116
One of many cockroaches...wake up SEC!
on Fri, 10/16/2009 - 14:06
#101122
What does it take to get probable cause to tap Timmay and LLoyd?
on Fri, 10/16/2009 - 14:23
#101145
Interesting how the media was waiting outside his apartment. Happens all the time but telling the press about a pending arrest before the arrest is made seems like the media is "trading on inside information." Were all press outlets afforded the same opportunity?
on Fri, 10/16/2009 - 15:46
#101278
I'm sure the Federales had to pick carefully through an enormous list of frauds to come up with someone to prosecute who can't implicate members of the leading crime syndicates - Goldman and JPMorgan.
on Fri, 10/16/2009 - 18:21
#101444
Hard to believe illegal activity occurred at a hedge fund named after a pirate ship.
Find Wall Street Trader truths at www.dopeycowboy.com
on Fri, 10/16/2009 - 18:29
#101452
Hey for 2009 insider trading just check out KBW's timely upgrade of ICE today; turning 14,000 soon to be worthless option contracts into 1520% and 6250% gainers on expiration Friday.
Now if that's not insider trading, I don't know what is. Ya think KBW and its clients were long stock and Oct. options going into today ?
Let's see some enforcement on real time fraud and manipulation.
on Fri, 10/16/2009 - 19:48
#101523
This guy makes $20 million in a year with inside information. Meanwhile, GS makes $100 million in a day with inside information.
on Fri, 10/16/2009 - 19:55
#101526
Also charged in the scheme are Rajiv Goel, 51, of Los Altos, Calif., a director of strategic investments at Intel Capital, the investment arm of Intel Corp., Anil Kumar, 51, of Santa Clara, Calif., a director at McKinsey & Co. Inc., a global management consulting firm, and Robert Moffat, 53, of Ridgefield, Conn., senior vice president and group executive at International Business Machines Corp.'s Systems and Technology Group.
The others charged in the case were identified as Danielle Chiesi, 43, of New York City, and Mark Kurland, 60, also of New York City.
on Fri, 10/16/2009 - 21:57
#101656
He's no different then Gordon Gekko...