Blog posts with "insider trading"

Displaying 1-5 of 5 result(s).

Part III: Raj's Bounty & the Galleon

In the continuing story of the hi-jinks of Raj Rajaratnam, a new indictment was filed this past Tuesday by a New York Federal grand jury. Yet another player has been fingered in this fiasco, a consultant by the name of Danielle Chiesi. Though earlier allegations estimated Raj's ill-gotten gains at around $25 million, the new indictment puts the amount at closer to $50 million.   Just like in the TV shows, the truth comes out when people start squealing. In this case, a tipper (as in provided...

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Part II: Billionaire, Founder of Galleon Group, Charged With Insider Trading

  Raj Rajaratnam, the billionaire founder of the Galleon Group that I wrote about in my last post has also been charged by the SEC in Federal court. The SEC claims Rajaratnam's scheme was massive (as illustrated in the diagram above), and generated more than $25 million. Other companies allegedly involved are IBM, Intel, and Mckinsey & Company.     What makes this development interesting is that the SEC is suing in civil court, unlike what Federal Prosecutors have done in the Federal c...

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Billionaire, Founder of Galleon Group, Charged With Insider Trading

Listed by Forbes as number 559 of the worlds richest people, Raj Rajaratnam was worth $1.3 billion. Sadly, some of those funds may have been ill-begotten. Yesterday the US Attorneys of the Southern District of New York charged Rajaratnam with securities fraud pursuant to the insider trading portions statutes 15 U.S.C. §§ 78j(b), 78ff; 17 C.F.R. §§ 240.10b-5, and 240.10b5-2. AllegedlyRajaratnam obtained inside information from another hedge fund operator, and traded upon it, making several...

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Not Insider Trading? Part II

For more background on "flash" trading, see my prior post "Not Insider Trading? Part I." Senator Charles Schumer (D-NY) said earlier today that an SEC ban on flash trading was "imminent." Schumer said that in a discussion he had with Securities and Exchange Commission Chairman Mary Schapiro, she personally promised him that the ban would be forthcoming. This is part of a broader investigation into questionable trading practices such as "dark pools," anonymous trading groups, and high frequenc...

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Not Insider Trading? Part I

See if you can figure this one out: if you are extremely rich and influential, then you can receive market news before the general public, and legally trade on it. What?! The service provided to these traders, known as "flashing," allows them to view orders submitted to exchanges, like the Nasdaq, before they are actually placed on the open market. The time period to review the information before the trade is placed is very short, fractions of a second, but enough time for an automated comput...

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