Circle of Friends (50 page)

Fairfax Financial, 93, 270, 271, 280–81, 325

fairness, 11–13, 14, 15–16, 30, 39

Faneuil, Doug, 59, 62, 64, 325

Far, Ali, 205–6, 207

FBI (Federal Bureau of Investigation)

      arrest procedure of, 213

      and Bharara media statement about insider trading, 227

      Bharara relations with, 259–61

      Chaves reputation within, 146

      cooperators deals with, 157

      and cost of insider trading investigations, 258

      and debate about insider trading, 13

      definition of insider trading and, 273

      and difficulty of proving and prosecuting insider trading cases, 64

      Douglas public service announcement about insider trading and, 260–61

      Dowd complaints about, 254

      expert networks and, 207, 229

      financial crisis of 2008 and, 143, 183, 226

      Franklin's circle of friends and, 103

      funding/manpower at, 144, 183

      insider trading as focus of, 143

      Justice Department relationship to, 227

      largest number of insider trading arrests in history of, 216

      leaks and, 254

      Makol reputation within, 153

      media and, 254

      “October Surprise” and, 299

      politics and, 205

      public image of, 144, 228

      public relations and, 227–28, 260–61

      publicity about insider trading and, 234

      and Rajaratnam-Gupta relationship, 196–97

      rivalries within, 144–45, 160–61

      SEC relations with, 161

      SEC/Wadhwa investigation of Rajaratnam and, 118–19, 128–29, 141, 161, 262

      and sharing of information among law enforcement agencies, 96–97

      Streeter and, 235

      terrorism and, 129

      U.S. Attorney's Office for Southern District of New York and, 227–28

      views about Wall Street within, 145

      and Wadhwa presentation about Khan-Rajaratnam, 128–29

      wiretaps and, 130–31, 183, 239

      
See also specific person or case

FDIC insurance, 49

Fedarcyk, Janice, 228, 261

Federal Reserve, 15, 142, 200, 216, 318

Federal Wiretap Act (1968), 164, 184–85

Ferguson, Charles, 223

financial crash, 2008: conflicts of interest and, 27

financial crisis, 2008

      aftermath of, 142–43, 199–200, 216, 226

      AMD deal and, 189–90

      bailouts following, 142, 183, 197, 198, 203, 320

      banks and, 22, 27, 142–43, 183, 197, 202–3, 204–5, 208, 263

      Bear Stearns and, 104, 142, 202–3, 265–66

      beginnings of, 104, 105, 142

      Burrough writings about, 265

      CDSs during, 202, 263

      Cohen/SAC Capital case and, 87, 180, 244, 246

      congressional investigations of, 27

      and debate about insider trading, 13, 17–18

      FBI funding and, 183

      and future of insider trading, 320

      Goldman Sachs and, 197–98

      hedge funds and, 189–90, 202

      and increase in risk-taking, 49

      investor confidence and, 15, 200

      Justice Department and, 143, 226, 253

      law enforcement/regulators and, 223, 226, 258, 263, 318

      leverage and, 22

      Obama and, 199–200, 205

      politics and, 19, 205

      prosecutions related to, 204–5, 318

      public reaction to, 17–18, 199–200, 223

      Rajaratnam/Galleon case and, 115, 256–57

      Rajaratnam views about, 194

      SEC and, 200, 201, 203, 204–5

      Wall Street culture and, 196

Financial Industry Regulatory Authority (FINRA), 52, 74, 85, 262, 273, 302, 303

Financial Times
, 95, 196

Financial Writers Association, 258

Fink, Larry, 68

Fish, Andrew, 165, 167, 168, 177, 286

Fisher, Philip A., 123

flash crash, 263

Fleishman, James, 220, 221

Flextronics, 84, 221, 233, 234, 328

Food and Drug Administration (FDA), 59–60, 61, 62, 63, 208, 295–98, 308, 325

Forbes
magazine, 71, 85, 115

Fox, Bud, 1

Fox Business Network, 230, 277, 299–300

Franklin, Erik, 99–104, 106, 145, 146, 148, 150–51, 156, 325

Freeman, Noah, 231–33, 234, 276, 278, 289, 298, 312, 325

Friedman, Jason, 126

Friedman, Milton, 16

Friess Associates, 221

Friess, Foster, 221

front-running, 74

Fuld, Dick, 299

Funkhouser, Cameron “Cam”

      Boesky as inspiration for, 53

      Cohen/SAC Capital and, 66, 68, 74, 94, 95, 178, 302

      Franklin circle of friends and, 102

      Grassley inquiries about referrals to SEC by, 273

      Karcher case and, 54–55

      Lyford Cay hedge funds and, 101, 102

      tracking/surveillance systems of, 52–53, 55, 56, 65, 74, 94, 101, 102, 106, 178, 237, 273, 325

      and typical insider trader profile, 53–54

Galleon Group

      accomplishments of law enforcement and, 16

      Akamai trades and, 191

      AMD trades and, 189, 220

      assets of, 17, 114, 115, 253

      Choo-Beng Lee and, 206

      collapse of, 325

      cooperators and, 182, 236, 240, 248

      culture at, 115, 154, 166

      Drimal case and, 150, 157–58, 166, 167, 169, 218

      expert networks and, 209

      Far at, 206

      FBI/Chaves investigation of, 4, 132–34, 145, 146

      financial crisis of 2008 and, 115

      focus of, 125

      founding of, 114, 186, 325, 327

      Goffer at, 218

      Goldman Sachs and, 186

      Google trades of, 128

      Hilton trades and, 134

      importance of case against, 131, 235–36

      Justice Department investigation of, 118, 127, 129, 132, 133, 210–11, 253, 304

      Kang investigation of, 14, 118, 130, 145, 167, 183, 199, 206, 209, 210, 211, 213–15, 239, 241, 242, 302, 326

      Khuzami and, 200

      Kinnucan and, 82

      Kurland and, 326

      and race and ethnicity issues, 181

      Rajaratnam SEC deposition and, 124

      Rajaratnam trial and, 235–43

      research and, 114, 124, 126

      Rosenbach role in, 171–72

      SAC Capital compared with, 114–15, 116

      SEC anonymous letter about, 125

      SEC/Wadhwa examination and investigation of, 110, 116–19, 125, 126, 127, 133, 144, 165, 181, 184, 200–201, 209, 210–11, 235, 239, 242, 250, 254, 256, 328

      Sedna and, 117, 124

      size and importance of, 3, 186

      Slaine and, 3, 147, 148, 150, 151, 152, 154, 155, 158, 160, 167–68, 186

      trading patterns of, 66, 116–19, 146

      Whitman and, 329

      wiretaps on, 164

      
See also
Rajaratnam, Raj;
specific employee

Gambino, Carlo, 277

Ganek, David, 274

Gannon, Kathryn (aka Marylin Star), 57, 58, 61, 66, 103, 325, 327

Garcia, Michael, 104, 131, 325

Gasthalter, Jonathan, 300, 314

Gates, Bill, 196, 269

Geithner, Timothy, 200

Gekko, Gordon (fictional character), 260–61

Genentech, 94

General Electric, 90, 108

Gerson Lehrman Group, 75, 208, 257, 296, 305, 307, 325

Gilman, Sidney, 208, 304, 305–6, 307, 308, 309, 310, 311, 325

Gintel, Robert, 32, 37, 325

Giuliani, Rudy, 18, 41, 51, 181, 225–26, 260

Glass-Steagall law, 49

Goel, Rajiv, 126, 182, 216, 251–52, 325

Goffer, Emanuel, 172, 218

Goffer, Zvi “Octopussy,” 168, 170–71, 172–74, 218, 256, 285, 287, 325

gold, 15, 23, 263, 318

Goldberg, Jason, 173

Goldberg, Lauren

      as lead investigator on Galleon investigation, 167, 325

      and Rajaratnam-Tamil Tigers connection, 129

      and Rajaratnam wiretaps, 163–65, 182, 239–40, 241, 242, 253

      and SEC wiretaps, 184

      and Wadhwa presentation about Khan-Rajaratnam, 128

Goldman Sachs

      bailout of, 198, 199

      Buffet deal with, 198–99, 283

      Cohen/SAC case and, 131

      financial crisis of 2008 and, 197–98

      forklift driver-
BusinessWeek
case and, 152–53

      Gupta as board member at, 8, 182, 196, 197, 198, 225, 287

      Pajcin-Plotkin case and, 112, 113

      and race on Wall Street, 113

      and racism on Wall Street, 113

      Rajaratnam/Galleon Group and, 131, 186, 248, 283

      SAC compared with, 302

      SEC investigation of, 223, 262, 263

      SEC toxic securities fine for, 223, 315, 316

      Wachovia deal and, 197–98

      
See also
Blankfein, Lloyd

Goldstein, Katherine, 284

Goodwin, Homer, 28

Google, 128, 137, 181, 205, 206, 235

Gottesman, Norbert, 296

Gotti, John, 139

Gramm-Leach-Bliley Act, 201

Grand Metropolitan PLC, 44–45

Grant, Ulysses S., 23

Grassley, Charles, 90, 273

Gravano, Sammy “the Bull,” 139

Great Depression: insider trading during, 23–29

Griffin, Kenneth, 83

Grubman, Jack, 79, 325

Gruntal & Co., 50, 67–68, 106, 108

Gupta, Rajat

      and accomplishments of “Perfect Hedge,” 8

      arrest/trial of, 258, 268–69, 287, 325

      defenders of, 269

      as Goldman Sachs board member, 8, 182, 196, 197, 198, 287, 325

      and Goldman Sachs-Buffet deal, 198–99

      Indian School of Business speech by, 249

      investigation of, 248–49

      Kumar and, 195–96

      at McKinsey & Co., 127, 180, 182, 196, 199, 287, 325

      motivation of, 195

      personal life of, 196

      public concern about activities of, 199

      Rajaratnam case and, 8, 180, 182, 195, 196–97, 198–99, 210, 214–15, 248, 249, 269, 325

      Rajaratnam compared with, 269

      SEC and, 195–96

      Streeter views about, 249, 250

      Wadhwa and, 195–96, 327

      wealth of, 196

Guttenberg, Mitchel, 100–101, 103, 106, 145, 146, 150–51, 325–26

Hamilton, Alexander, 21, 22, 322

Harrison, Todd, 149, 150, 285

Harvard Club (New York City), 55, 169

Hayek, Friedrich, 16

“Heard on the Street” column (
Wall Street Journal
), 42

hedge funds

      and access to NYSE information, 262

      as all-male bastion, 187

      assets of, 88, 97

      as bragging about exploits, 18

      as “buy side,” 147

      Chaves research about, 145–46

      circle of friends at, 2

      definition of insider trading and, 264

      difficulty of proving cases against, 88

      entrenchment of insider trading in, 145

      expert networks and, 75, 81, 207–9, 219, 220, 222, 227–28, 257, 269

      fees charged by, 67, 81

      financial crisis of 2008 and, 189–90, 202

      growth of, 50, 65, 81, 97

      importance of edge to, 3, 65, 80, 94–95

      incestuous quality about, 214

      insider trading as systemic among, 2–3

      Khuzami views about, 264–65

      Kinnucan and, 229

      Obama contributions from, 200

      regulation of, 3, 82

      replacement of traditional investment banks by, 50

      research for, 51, 75, 80–84

      rewards for, 148

      risk-taking by, 148

      SEC compared with, 111

      SEC focus on, 106, 262, 264

      size and importance of, 3, 74, 145, 209

      SkyBridge Capital conference for, 274–75

      Slaine interest in, 147

      as targets of law enforcement, 231

      views about regulators by, 96

      wire taps on, 64, 65–66

      
See also specific fund

Heller Financial, 90

Hilton Hotels, 127–28, 134, 137, 140, 162, 165, 171, 176, 214, 235, 328

Hilton, Paris, 140, 162

Hintz, Brad, 204

Holder, Eric, 253–54, 260, 317–18

Hollander, Jonathan, 243–46, 271, 276, 278, 298, 312, 326

Holwell, Richard, 237, 238–43, 253, 255–57, 287, 326