Arrested analyst allegedly tipped off hedge fund to Microsoft deal
Federal authorities have arrested a financial analyst who shared inside information about a 2009 advertising deal between Microsoft and Yahoo. He allegedly got the tip from a Microsoft executive.
NEW YORK — A financial analyst provided inside information about a blockbuster deal between Microsoft and Yahoo to a portfolio manager at a hedge fund that’s become the target of a sweeping investigation, authorities said Tuesday.
Federal prosecutors in New York announced the securities-fraud charges against Sandeep Aggarwal a day after he was arrested in San Jose, Calif. There was no immediate response to a phone message left Tuesday with his attorney.
Posted in Breaking news, Equity Markets, Events, Finance
Tagged Financial analyst, insider-trading, Microsoft, New York, SAC Capital Advisors, San Jose California, tuesday, Yahoo
Clouds over hedge fund industry grow darker
One of the most-successful, high-profile hedge funds indicted on insider-trading charges.
Lousy performance. Big losses on gold bets gone bad. Bad P.R.
Not to mention a critical story earlier this month byBloomberg BusinessWeek which wondered aloud if these pricey investment vehicles run by the so-called smart money for rich folks are for suckers.
To say it has been a rotten year for hedge funds would be an understatement.
“Hedge funds are under attack,” says Andrew Stoltmann, a Chicago securities attorney. “I don’t think there is any question that this has been the worst year for hedge funds in the last 20 years. It has been a tsunami of horrible press and horrible accusations.”
Posted in Economy, Finance, Hedge Funds, Opinion
Tagged Bloomberg Businessweek, Business, Chicago, Collective investment scheme, hedge fund, insider-trading, investing, SAC Capital Advisors
A portfolio manager at Whitman Capital, LLC, Doug Whitman, has been found guilty of conspiracy and securities fraud crimes stemming from his involvement in two insider trading schemes that earned his firm more than $900,000 in illegal profits.
Whitman was convicted on all four counts with which he was charged. As part of the schemes, Whitman executed trades based on material, Inside Information, related to three publicly traded companies: Marvell Technology Group, Ltd, Polycom, Inc and Google, Inc.
As reported by Newsroom America Staff, from 2007 through 2009, while running Whitman Capital, Whitman bought and sold Marvell stock and options based on Inside Information, including earnings, revenue, and/or other material financial and business information. The Inside Information was provided to Whitman by Karl Motey, an independent research consultant, who had obtained it from certain Marvell employees.
Posted in Financial Crisis, Hedge Funds
Tagged doug whitman, Fraud, Google, Hedge Fund conference, Hedge Funds, insider-trading, Karl Motey, modernfinancereport, SEC, Whitman Capital
President Barack Obama signed into law a bill strengthening the ban on insider trading by members of Congress and other government officials who might profit on private knowledge they gain from work, Bloomberg reports.
“We were sent here to serve the American people and look out for their interests, not to look out for our own interests,” Obama said at a signing ceremony in Washington, joined by Republican and Democratic members of Congress. “There is a deficit of trust between this city and the rest of the country.”
The president had called for passage of the bill, S. 2038, in his State of the Union message in January. It is called the Stock Act, for Stock Trading on Congressional Knowledge.
The law prohibits lawmakers, their staffs and some executive branch employees from trading stocks, commodities or futures based on private information they learn on the job. It would prevent lawmakers from participating in initial public offerings that aren’t available to the general public.
The Wall Street Journal’ Steve Eder and Jenny Strasburg report that a hedge-fund industry group asked federal securities regulators for guidelines on the use of “expert networks,” which have been under scrutiny in a federal insider-trading probe, the organization’s chief executive said.
The request Monday by the Managed Funds Association, a Washington lobbying group, comes amid continuing developments in the investigation, which is examining whether hedge funds and other investors traded on inside information received from corporate employees freelancing as consultants for expert-network firms.
Monday, an investor in hedge-fund firm Barai Capital Management told clients that Barai said it is cooperating with prosecutors in the probe and has begun to wind down its portfolios.
The move followed a Wall Street Journal report Monday that Barai Capital was raided by Federal Bureau of Investigation agents as part of the probe and that its founder was an alleged co-conspirator in a previously filed criminal case.
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