Circle of Friends (54 page)

Slaine, Mason, 156

small/average investors

      and Bharara media statement about insider trading, 223

      and comparison of Rajaratnam, Gupta and Madoff, 250

      and debate/questions about insider trading, 12, 13, 15–16

      Facebook IPO and, 16

      financial crisis of 2008 and, 216

      and Goldman Sachs-Buffet deal, 198

      and Levitt image at SEC, 201

      Martha Stewart case and, 60, 61

      in 1990s, 43

      Rajaratnam case and, 263

      as reason for law enforcement focus, 10, 11

      research reports for, 78

      SEC evaluations of personnel and, 184

      unavailability of information for, 91

      views about insider trading of, 11, 318

soft dollars, 94–95

Spence, Gerry, 282

Spherix Advisers, 205, 207, 324

Spitzer, Eliot, 27, 43, 48, 78–79, 80, 82, 110–11, 124, 260, 328

Sprint, 252

Standley, John, 72–73

Star, Marylin.
See
Gannon, Kathryn

statute of limitations, 302, 317

Steel, Bob, 197

Steinberg, Michael, 8–9, 276, 288, 298, 312–14, 328

Stewart, Martha, 59–65, 66, 67, 97, 141, 145, 152, 207, 238, 257, 266, 324, 325, 328

Stillman, Charles, 309–10, 314, 319

stock manipulation, 25, 26, 31, 307

stock market crash (1929), 11, 24, 26–27

stock market crash (1987), 42

stock ratings, 76

Streeter, Jonathan, 235–37, 238–43, 244, 247–50, 251, 252, 255, 258, 328

Sullivan, Martin, 142

Supreme Court, New Jersey: Fairfax-SAC case and, 270

Supreme Court, U.S.

      Chiarella case and, 38–39, 40

      Dirks case and, 33, 34–36, 39–40

      O'Hagen case and, 43–45

      Winans case and, 42

surveillance/tracking systems.
See specific person, organization, or case

Symington, Fife, 236

Tamil Tigers, 116, 129

Taylor, Kieran, 190

technology

      disruptions of markets by, 263

      flash crashes and, 263

      and increased risk-taking on Wall Street, 48

      and specialized industries workers as researchers, 51

technology companies

      research about, 82, 83–84

      stock ratings for, 76

      
See also specific company

terrorism, 129, 131, 163, 164, 256

Texas Gulf Sulphur case, 36–37, 38–39

Third Point, 271

Thoresen, Matthew, 291

3Com, 170–71, 172, 173, 285, 322

Time
magazine, 85–86, 259

Title III.
See
Omnibus Crime Control and Safe Streets Act

Today's Special
(movie), 210

Tong, Andrew, 93

“too big to fail,” 317, 319

Travelers Group, 49

Treasury, U.S., 22, 142

Trivium Capital Management, 138, 161

Troubled Asset Relief Program (TARP), 198

UBS, 2, 100, 101, 103, 150–51, 155, 244, 324, 325

“unindicted co-conspirators,” 288, 312–13

U.S. Attorney for the Southern District of New York

      expansion of, 47–48

      FBI and, 227–28

      leaks and, 254

      Martha Stewart case and, 60, 61–63

      
See also
Bharara, Preetinder; Giuliani, Rudy;
specific case

U.S. Postal Service, 41

Vanity Fair

      Bear Stearns story in, 265–66

      Cohen profile for, 265, 266, 267–68, 275, 277

Vivus, 295–98

Wachovia Bank, 197–98

Wadhwa, Sanjay

      Anticevic case and, 112

      Bharara meetings with, 261

      Cohen/SAC Capital case and, 262, 301, 303–6, 307, 308, 328

      commitment to enforcing laws about insider trading of, 14, 318

      and ethnic aspect of Rajaratnam case, 180–81

      expert networks investigations and, 208–9, 262

      FBI and, 118–19, 128, 141, 161

      first SEC case of, 111

      Gupta case and, 195–96, 327

      insider trading as focus of, 143, 262

      Justice Department relations with, 127, 128, 262

      Kang and, 161, 177, 211, 301, 302–3, 304–5

      Khan case and, 128–29, 130, 141, 177, 181

      Kumar and, 194, 195–96

      and limitations of SEC, 184

      Makol and, 112, 128

      Martoma case and, 305–6, 307

      motivation of, 181

      NYSE case of, 262

      personal background of, 113, 114, 181

      personal life of, 303

      politics and, 205

      post-Rajaratnam investigation activities of, 258, 261–62

      presentation about Khan-Rajaratnam to other agencies by, 128–29

      professional background of, 110, 111, 114, 143

      publicity about, 262

      Rajaratnam deposition and, 121–25

      Rajaratnam/Galleon Group case and, 110, 116–19, 125–26, 127, 129–30, 180–82, 184, 194, 199, 201, 209, 210–11, 249, 250, 261, 262, 301–2, 328

      Rajaratnam wiretaps and, 177, 301

      reputation of, 141

      Schapiro and, 200, 261

      SEC evaluations of, 184

      Sedna Capital case and, 114, 116

      style of, 109–10

      views about SEC of, 111, 112

Waksal, Sam, 59, 60, 61, 62, 63, 66, 157, 328

Wall Street

      business model in 1990s of, 48–51

      as “buyer beware” territory, 25

      Chaves views about, 146

      commercial banking and, 49

      compensation and bonuses on, 104–5

      complexity of, 75

      culture of, 49–50, 196, 256–57

      and debate about insider trading, 16

      FBI views about, 145

      financial crisis of 2008 and, 196, 256–57

      hierarchy on, 50

      information as central to trading activities of, 50–51

      leverage and, 48–49

      new product development on, 48

      Obama contributions from, 200

      public views about, 63

      race/ethnicity on, 113–14

      Rajaratnam as scape goat for crimes of, 256–57

      risk-taking on, 48–49, 143, 202, 203

      SAC relationship with, 271–72, 319

      SEC as patsy for, 90

      self-regulation of, 52–53

      views about SEC of, 143

Wall Street Journal

      Bharara investigations and, 226, 228

      Blodgett story in, 79

      Cohen as reader of, 67

      Cohen stories in, 85–86

      Cox as reader of, 183

      and debate about insider trading, 183

      expert network investigation and, 228

      “Heard on the Street” column in, 42

      Kanjilal as reader of, 77

      Kinnucan story in, 230

      leaks to, 254, 285

      McCarthy criticisms of, 254

      ownership of, 95

      Rajaratnam trial stories and, 254

      Slaine outing by, 285

      as soft dollars, 94

      and Steinberg arrest, 313

      Winans case and, 42, 329

Wall Street
(movie), 260

Wang, Wesley, 276, 288

wealth effect, 15

Weill, Sandy, 49

Weinstein, Jack, 160

whale.
See Moby-Dick
analogy

Wharton School of Business, 114, 126, 127, 180, 186, 255

Whitman Capital, 128, 161–62, 329

Whitman, Doug, 128, 161–63, 176, 292, 329

Willkie Farr & Gallagher, 270

Winans, Foster, 42, 327

wires (recording devices), 159

wiretaps

      and Bharara as listening to wiretapped conversation, 259

      Bharara statement about, 222–23

      on cell phones, 163

      cooperators and, 164, 182

      cost of, 183, 238

      court standards for use of, 163

      debate about insider trading and, 18

      as evidence in trials, 256–61

      FBI and, 239

      importance of, 173

      and insider trading as focus of law enforcement/regulators, 228

      Justice Department and, 177, 183

      law about, 164, 184–85, 257–58

      organized crime/drug cases and, 131, 145, 163, 164, 236, 256

      privacy and, 65, 159, 163, 164, 165, 238–43

      and proving of insider trading, 65–66

      SEC and, 177, 184–85, 242

      and suspicions about rats, 207

      use in white-collar cases of, 9, 130–31, 159, 163–65, 236

      
See also specific person

World Financial Center, 121

World Trade Center, 203

WorldCom, 34, 43, 79

Wyeth, 280, 303, 305, 306, 307, 311

Wynn, Steve, 316

Xilinx, 165, 175–76, 182

Yucaipa Companies, 72

Zamansky, Jake, 78

ABOUT THE AUTHOR

CHARLES GASPARINO
is a senior correspondent for the Fox Business Network and the Fox News Channel, where he reports on major developments in the world of finance and politics. He writes a column for the
New York Post,
The Daily Beast,
and
The Huffington Post
. He lives in New York City.

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www.AuthorTracker.com
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ALSO BY CHARLES GASPARINO

King of the Club

The Sellout

Bought and Paid For

Blood on the Street

CREDITS

Cover photograph © by Mike Powell / Getty Images (shadow of people) 

Cover design by Milan Bozic

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