“The defendants operated in a world of, you scratch my back, I’ll scratch your back,” U.S. Attorney Preet Bharara in Manhattan said at a press conference today. “Greed, sometimes, is not good.”
It’s the largest ever hedge fund insider trading case, Bharara said. It’s the first time wiretaps have been used to target insider trading, signaling the government will now use the same tools against Wall Street that it employs in organized crime and drug cases, he said. Bharara called the case “unprecedented.”
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Government Accountability Office Reports $9.1 Trillion Federal Budget Deficit IS ON ITS WAY!!!!!!
The nation's long-term fiscal outlook remains unsustainable, according to a new Government Accountability Office analysis showing escalating levels of debt and a surging budget deficit.
The GAO report comes as CBO is expected to announce on Friday the fiscal 2009 deficit will hit a record $1.4 trillion, or 9.9 percent of GDP. It will total $9.1 trillion over the next decade, in line with estimates that were made earlier this month.
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NEW YORK — One of America's wealthiest men was among six hedge fund managers and corporate executives arrested Friday in a hedge fund insider trading case that authorities say generated more than $25 million in illegal profits and was a wake-up call for Wall Street.
Raj Rajaratnam, a portfolio manager for Galleon Group, a hedge fund with up to $7 billion in assets under management, was accused of conspiring with others to use insider information to trade securities in several publicly traded companies, including Google Inc.
U.S. Magistrate Judge Douglas F. Eaton set bail at $100 million to be secured by $20 million in collateral despite a request by prosecutors to deny bail. He also ordered Rajaratnam, who has both U.S. and Sri Lankan citizenship, to stay within 110 miles of New York City. The judge gave prosecutors until shortly after 6 p.m. to consider appealing his bail ruling.
U.S. Attorney Preet Bharara told a news conference it was the largest hedge fund case ever prosecuted and marked the first use of court-authorized wiretaps to capture conversations by suspects in an insider trading case.
He said the case should cause financial professionals considering insider trades in the future to wonder whether law enforcement is listening.
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Rockefeller & Co. CEO Dies From Gunshot Wound
James McDonald, chief executive officer of New York investment firm Rockefeller & Co., died Sunday, apparently from a self-inflicted gunshot wound, according to the Bristol County district attorney’s office in New Bedford, Massachusetts.
McDonald was found in a car behind an auto dealership in Dartmouth, Massachusetts, said Gregg Miliote, a spokesman for the district attorney’s office. He appeared to have shot himself, though the matter is still under investigation, Miliote said.
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