And Everybody Pays...Wall Street Insider Trading Includes Bear Stearns Alumni + Transactions In Companies Like Google, AMD, Hilton and Sun.

8 Trades the Insiders Allegedly Made

by Michael Copeland


Monday, October 19, 2009 provided by

The government's case against the Galleon crew includes transactions in companies like Google, AMD, Hilton and Sun.

The government's case in what it is calling the largest insider trading case involving a U.S. hedge fund contains a detailed list of trades involving household-name companies.

Investigators have pieced together a case that alleges more than $25 million in illegal gains based on trading in 2006-09 on companies including Advanced Micro Devices (AMD), Akamai (AKAM), Clearwire (CLWR), Google (GOOG), Hilton, Polycom (PLCM) and Sun Microsystems (JAVA), among others.

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Accused Inside Trader Is Bear Stearns Alumni

As the fraud trial of two former hedge-fund managers from Bear gets underway, the former head of their division gets arrested in the Galleon insider-trading scandal

By William D. Cohan, contributor

Last Updated: October 19, 2009: 12:59 PM ET

NEW YORK (Fortune) -- The $20 million insider-trading ring that the U.S. government alleges was masterminded by billionaire hedge-fund manager Raj Rajaratnam also included two former Bear Stearns hedge-fund managers. According to two federal complaints, two of Rajaratnam's partners in the alleged crimes were Mark Kurland, of Mount Kisco, N.Y., and Danielle Chiesi of New York City. Both Kurland, 60, and Chiesi, 43, were arrested last week, along with Rajaratnam, and charged with insider trading. Bail for Kurland was set at $3 million and for Chiesi at $2 million (Rajaratnam's was set at $100 million).

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And Everybody Pays...Galleon’s Rajaratnam Charged in Biggest Hedge Scheme Ever...GAO: Debt could break record in 10 years

“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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Billionaire Among 6 Nabbed In Inside Trading Case

By LARRY NEUMEISTER and CANDICE CHOI (AP) – 18 minutes ago

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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