Seven charged over $62m insider trading

[alp227]

Last edited Thu Jan 19, 2012, 04:39 AM - Edit history (1)

Kara Scannell, Financial Times

Seven hedge fund portfolio managers and analysts have been charged in a $61.8m insider trading scheme as US authorities escalate their crackdown on Wall Street corruption.

Agents with the Federal Bureau of Investigation arrested three hedge fund managers in New York, Boston and Los Angeles on Wednesday morning. They were Jon Horvath from SAC Capital’s New York division, Sigma Capital Management; Todd Newman, formerly of Diamondback Capital Management; and Danny Kuo from Whittier Trust, a California fund manager.

Anthony Chiasson, co-founder of Level Global and an alumnus of SAC, surrendered to authorities. The men, charged with conspiracy and securities fraud, face up to 20 years in prison.

The arrests followed guilty pleas by three others who agreed to co-operate: Jesse Tortura, a former analyst with Diamondback, Spyridon Adondakis, formerly with Level Global, and Sandeep Goyal, a former analyst with Neuberger Berman who previously worked at Dell, the computer group.

full: http://liveweb.archive.org/http://www.ft.com/cms/s/0/f8ef1b2c-41d3-11e1-a1bf-00144feab49a.html

(ETA) now when will MEMBERS OF CONGRESS who engaged in insider trading be arrested?

[yodermon]

1. What do you call 7 hedge fund managers in handcuffs?

a, um... start? I guess?

better than nothing.

[Marie Marie]

2. Good one!

One of the reasons why American Greed on CNBC is one of my favorite shows. In the end, all these greedy law breakers end up in jail. Somehow, it just warms the soul.

[Lasher]

6. The problem is, all of them don't end up in jail.

Some of them, along with all their heirs for generations to come, live their entire lives luxury.

[newblewtoo]

8. unfortunately they would be called

Senators and Congressmen.

How can they self exempt themselves from insider trading laws?

[dotymed]

9. So true, and this happens most of the time.

I read the article and it did not mention the "punishment" for those that have already plea-bargained. If history is our guide, then those thieves will be fined a small percentage of their illegal profits. Most likely this other bunch of theives will not serve any real prison time and still realize great profits on their thievery. What an unfair country we have become. All for profit and greed.

GO OWS!

[NRaleighLiberal]

3. the tip of the iceberg, likely!

[ellisonz]

4. Book'em Danno. n/t

[pansypoo53219]

5. fuck prison.

take away their ill gotten gains. make them live on minimum wage.

[GTurck]

7. NO....

W.A.S.P.'s. That's interesting.

[sarcasmo]

10. It's a start.