Circle of Friends (53 page)

      small/average investors interest in, 263

      Streeter and, 328

      Tamil Tigers and, 116, 129

      trading patterns of, 66, 116–19

      trial of, 235–43, 247–56, 257, 324, 326

      U.S. Attorney for the Southern District of New York and trial of, 235–43, 254

      wealth of, 16, 115, 134, 210, 237, 251, 253

      wiretaps on, 130–32, 141, 153–54, 161, 163–65, 176, 177, 182, 183, 184, 185, 199, 206, 210, 236–37, 238–43, 247, 248, 251, 252, 253, 255, 256, 257, 301, 327

      Xilinx and, 175–76

      
See also
Galleon Group

Rajaratnam, Rengan, 114, 116, 117, 118, 123, 124, 127–28, 130, 161, 251, 301, 302, 328

Rajaratnam, Vandani, 251

Rakoff, Jed S., 287

Raphael, Justin, 241–42, 243

RCA: GE acquisition of, 108

Reebok, 112

Regulation Fair Disclosure (SEC edict), 277

regulators.
See
law enforcement/regulators;
specific person, agency or department

research

      as advertisements for investment banking clients, 84

      Becker case and, 74

      Galleon Group and, 114, 124, 126

      for hedge funds, 51

      independent, 75–84, 94, 269–70

      investment banking and, 75–80

      SAC Capital and, 80, 82, 94, 109

      SEC and, 77

      for small/average investors, 78

      and specialized industries workers as researchers, 51

      
See also
analysts/researchers; expert networks; mosaic information;
specific person or organization

RJR Nabisco, 265

Roberts, Mary, 296

Rom, Edmund, 229, 284

Romney, Mitt, 298, 300

Roosevelt, Franklin D., 23, 25, 28

Ropes & Gray, 170, 171, 173, 218, 322

Rosenbach, Gary, 114, 148, 153, 158, 166, 169, 171–72, 218, 328

Rosenfeld, David, 268

Rugg, Arthur Prentice, 26, 28, 328

Ruiz, Hector, 188, 189, 328

“Rumi.”
See
Khan, Roomy

SAC Capital

      A&P-Pathmark deal and, 72–73, 74

      allegations against, 68–69

      Amazon.com trades and, 160

      arrest and conviction of employees of, 8–10, 312–13

      assets/returns of, 9, 10, 68, 81, 85, 86, 94, 115, 246, 267, 268, 274, 315, 324, 328

      Biovail and, 93, 107, 271, 280–81, 307–8, 321–22

      Burrough profile about Cohen and, 265–68

      Choo-Beng Lee and, 205, 206, 209–10, 276

      civil fraud charge against, 312

      Cohen personal investment in, 315

      Cohen role in, 87–88, 243–44, 245, 271, 298

      compliance department at, 245, 272, 275, 277, 278, 281, 282, 312

      Conheeney assurance about survival of, 275

      cooperators and, 87, 276, 302, 312

      coordination of government information about, 219

      CR Intrinsic unit at, 243–44, 279, 296

      culture at, 66, 69, 87, 93, 114, 166, 206, 231, 232, 245, 271, 278

      defenders of, 276–77, 278

      Dell trades of, 312

      document retention policy at, 278–79

      “edge” of, 9, 10, 80, 206, 271–72, 281, 294, 297, 300–301, 318

      Elan and Wyeth trades of, 303, 305, 306, 307

      emails of, 279, 304, 305

      expert networks and, 81, 82, 94, 109, 208, 209, 222, 232

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

      FBI/Chaves/Kang investigation of, 4, 9, 69, 85, 91, 92, 93–94, 108, 109, 146, 179, 219, 231–32, 244, 271, 299–300, 301, 306

      fees charged by, 67

      financial crisis of 2008 and, 180, 244, 246

      founding of, 50, 67, 106, 279, 322

      fraud charges against, 74

      Freeman and, 231–32, 276, 278

      front-running at, 74

      as “full commission” firm, 95

      Galleon compared with, 114–15, 116

      Goldman Sachs and, 131, 302

      Hollander and, 243–46, 271, 276, 278

      Horvath and, 288

      “hub and spoke” trading model at, 298

      impact of Cohen indictment on, 319

      importance of, 3

      insurance for investors at, 281

      investor base of, 315

      investor support for, 281

      Jiau and, 278

      Justice Department and, 68, 85, 179, 268, 281, 304, 306

      Kang and, 92, 209, 271, 301–3, 304–5, 307, 308

      Kinnucan and, 81, 84, 94, 221, 222, 229, 230–31, 234

      leverage and, 68, 92, 94

      Madoff comments about, 95

      Martoma case and, 280, 306–7, 308, 309–10, 312

      mosaic information and, 94

      Nvidia trades at, 312

      organization/structure of, 87–88, 243–44, 279

      organized crime compared with, 277

      Pathmark trades and, 72, 73–74

      promotional brochures of, 271

      public relations for, 277, 317

      risk-taking at, 105

      SEC fine for, 315, 316–17

      SEC/Wadhwa investigation of, 74, 88, 91, 96–97, 108, 179, 219, 245–46, 262, 268, 270, 272–74, 277, 281, 301, 303–6, 307, 308, 312, 316, 328

      sexual harassment case against, 93, 279–80

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

      size and influence of, 3, 81, 94, 179, 278

      Slaine and, 151, 152, 160, 178, 276

      trading patterns at, 66, 67, 68, 74, 81, 85, 91, 94, 95, 96–97, 116, 146, 178, 179, 267, 294, 303, 312

      trading records of, 304

      trading volume at, 50

      U.S. Attorney for the Southern District of New York and, 91, 94, 97, 244–45, 258, 268, 302

      Vivus case and, 295–98

      Wall Street relationship with, 271–72, 319

      
See also
Cohen, Steve “Stevie”;
specific employee

Salomon Smith Barney, 56, 79, 325

Samberg, Art, 88–91

San Pietro restaurant (New York City), 228–29

Sandisk, 293

Sard, George, 253, 266, 268, 277

Sard Verbinnen, 266, 300, 312, 314

Scaramucci, Anthony, 274–75, 276–77, 278, 315, 316

Schapiro, Mary, 200, 203, 204, 261, 328

Schottenfeld Group, 218

Schumer, Chuck, 224–25, 226

Schwarzman, Steve, 180

Section 10-b, 31, 32, 36, 38

Securities Act (1933), 11, 25–26, 31

Securities Exchange Act (1934), 11, 25–26, 31.
See also
Section 10-b

Securities and Exchange Commission (SEC)

      accomplishments of, 204, 262–63

      analysts/researchers and, 78, 79, 80

      anonymous letter about Galleon sent to, 125

      Cary as chairman of, 30–33, 34, 36

      commitment to enforcing laws about insider trading within, 14

      Cox as chairman of, 105–6, 183, 201, 203, 261, 264

      creation of, 11

      and debate about insider trading, 13, 18

      definition of insider trading and, 263–64, 273, 284

      and difficulties of prosecuting cases of insider trading, 64

      Dowd complaints about, 254

      elections of 2012 and, 300

      enforcement unit of, 117, 201, 203, 204, 312, 317

      evaluations of personnel at, 184

      examinations unit of, 117

      expansion of, 31, 51

      expert networks and, 207

      FBI relations with, 161

      financial crisis of 2008 and, 143, 200, 201, 203–5

      flash crashes and, 263

      formation of, 328

      Franklin circle of friends and, 103

      funding/resources for, 48, 111, 144, 184, 264

      and future insider trading cases, 319

      goals of, 111

      Grassley inquiry about FINRA/Funkhouser referrals to, 273

      hedge funds compared with, 111

      insider trading as focus of, 12, 29, 76

      insider trading “working group” within, 106

      Justice Department relations with, 239

      Kennedy (John F.) administration and, 29

      Kennedy (Joseph) as head of, 23, 24, 29

      Levitt as chairman of, 48, 51, 201

      limitations/problems of, 34–35, 74, 184

      New York Stock Exchange tips for, 262

      “perspiration effect” enforcement approach of, 35

      Pitt as chairman of, 260

      Pitt with, 34

      politics and, 88–90, 201, 205

      powers and authority of, 25–26, 31–32, 45

      prevalence of insider trading and, 104

      public relations efforts of, 223

      “pump and dump” and, 24

      and purpose of laws governing markets, 10–11

      Regulation Fair Disclosure of, 277

      reputation/image of, 184, 201, 204, 262–64

      Schapiro as chairman of, 200, 201, 203, 204, 261, 328

      as serious about crackdown on financial crimes, 223

      strategy of, 111

      strengths of, 97

      surveillance/tracking systems at, 95, 101, 106, 128, 237

      and tips as “black holes,” 74

      Wadhwa promotions at, 258, 261–62

      Wadhwa reputation and, 141

      as Wall Street patsy, 90

      Wall Street views about, 143

      “Wells Notice” of, 312, 316

      wiretaps and, 177, 184–85, 242

      
See also specific person or case

Sedna Capital, 114, 116, 117, 124, 302, 328

self-regulation: of Wall Street, 52–53

“sell-side” analysts, 75

Senate Judiciary Committee

      Aguirre and, 88, 90

      Bharara and, 225, 226

sexual harassment case: at SAC, 93, 279–80

Shah, Deep, 162, 176, 234–35, 328

Shankar, Gautham, 218

Shearman & Sterling, 121

Shimoon, Walter, 83, 221, 233, 234, 269, 282, 328

Siegel, Martin, 41–42, 55, 56, 103, 108, 225, 287, 306, 328

Sitrick, Michael, 271

60 Minutes
(TV program), 107, 266, 271

Skadden, Arps, Slate, Meagher & Flom, 105

SkyBridge Capital, 274–75, 277

Slaine, David

      ambitions of, 147–48

      appearance and personality of, 1–2

      and Babcock-Franklin-Guttenberg case, 150

      Chaves and, 150–51, 152, 154–55, 159–60, 172, 173, 174, 216, 233, 286

      at Chelsey Capital, 101, 103, 148

      Cohen/SAC Capital and, 3, 151, 160, 178, 276

      as cooperator/FBI informant, 1, 2, 4–6, 8, 150, 154–56, 159–60, 165–71, 173, 217–18, 285–86, 328

      deal for, 5, 7

      debate about insider trading and, 12, 13, 14, 15, 18

      Dickey and, 168

      Drimal and, 150, 157–58, 160, 165, 166, 167–68, 169, 170, 171, 172, 173, 177, 216, 217–18, 285–86

      “edge” of, 2

      Efficient Markets Theory and, 13, 14

      emotional and physical problems of, 168–69, 177, 287

      family of, 5, 6, 7

      FBI initial knowledge about, 2

      FBI investigation of, 4, 147–49, 151–52

      Franklin and, 101, 103, 156

      Goffer deal and, 170–71, 172

      importance to federal investigations of, 6–7

      interest in hedge funds of, 147

      Justice Department praise for, 285

      Kinnucan compared with, 285

      leaks about, 285

      Makol and, 1, 5–6, 150, 153–55, 156, 167–69, 170, 173, 177, 186, 216, 286

      at Morgan Stanley, 2, 147, 149, 150–51, 154, 168, 328

      outing of, 285–86

      Perfect Hedge role of, 6–7, 157

      personal life of, 149, 151–52, 177, 294

      personal and professional background of, 7, 147, 148–49

      personality of, 153–54

      post-Rajaratnam case undercover work of, 7

      as prototype of inside trader, 152

      Rajaratnam/Galleon case and, 3, 147, 148, 150, 151, 152, 154, 158, 160, 167–68, 186

      Rajaratnam relationship with, 148, 154, 167, 186

      reputation of, 1–2, 4, 147, 149, 168, 169, 218

      Rosenbach and, 148, 153, 158, 171–72

      SEC fines for, 286

      sentencing of, 285, 286

      suspension of, 147

      UBS tips and, 150–51, 155

      views about Wall Street and insider trading of, 154, 181

      wealth of, 149, 151, 155

      wire on, 165–71

Slaine, Elyse, 155, 156, 169, 177, 286, 294