- Probe Widening in Galleon Case
- Galleon Wiretaps Rattle Hedge Funds as Insider Trading Targeted
- Galleon ‘given inside information about Intel as far back as 1998′
- Learning To Love Insider Trading
- ‘Outsider Trading’ and Too Much Information
Probe Widening in Galleon Case – Wall Street Journal
Federal investigators in the Galleon Group case have requested trading records from a hedge-fund manager who once worked for Steven A. Cohen’s SAC Capital Advisors and who employed a cooperating witness in the insider-trading case announced last week, people familiar with the matter say.
The subpoena sent to the hedge-fund manager, Richard Grodin, doesn’t suggest wrongdoing. Nor does it suggest that Mr. Cohen — one of the nation’s most well-known and successful hedge-fund managers — has been implicated in any way, or that he knew about any trading by Mr. Grodin that the U.S. is seeking to examine as part of its continuing case…..
Galleon Wiretaps Rattle Hedge Funds as Insider Trading Targeted – Bloomberg
First came the biggest bear market since the 1930s, then Bernard Madoff’s $65 billion Ponzi scheme and the threat of increased regulation. Now hedge funds have a new concern: getting caught on tape as the government expands its use of wiretaps to ferret out insider trading.
Prosecutors, using secretly recorded phone conversations for the first time against hedge funds, alleged Oct. 16 that billionaire Raj Rajaratnam and five others made $20 million by swapping material inside information on companies such as Hilton Hotels Corp. and Google Inc. They may charge at least 10 more people soon, people familiar with the matter said last week……
Galleon ‘given inside information about Intel as far back as 1998′ – Financial Times
Federal prosecutors alleged that Galleon, the hedge fund founded by billionaire investor Raj Rajaratnam, received inside information about Intel from a company employee as far back as 1998, according to a court document filed in California…..
Learning To Love Insider Trading – Wall Street Journal
….Time to stop telling horror stories. Federal agents are wasting their time slapping handcuffs on hedge fund traders like Raj Rajaratnam, the financier charged last week with trading on nonpublic information involving IBM, Google and other big companies. The reassuring truth: Insider trading is impossible to police and helpful to markets and investors. Parsing the difference between legal and illegal insider trading is futile—and a disservice to all investors. Far from being so injurious to the economy that its practice must be criminalized, insiders buying and selling stocks based on their knowledge play a critical role in keeping asset prices honest—in keeping prices from lying to the public about corporate realities…..
‘Outsider Trading’ and Too Much Information - Wall Street Journal
Within days of the insider-trading accusations against the Galleon Group hedge fund, investors had pulled their money out. Within a week, the firm had to be liquidated.
Rather than the end of the story, however, the Galleon case is just the latest chapter in a drama about the proper role of information in driving markets. In a world where accurate information is usually considered an unambiguously good thing, the U.S. regulatory view has become that too much information is a bad thing…..
Tags: Galleon, Hedge funds, Insider Trading, Liquidations / implosions, Raj Rajaratnam, SAC Capital
