170 Details of Makol working with Slaine and Slaine leading FBI to Drimal’s 3Com trade from author interviews and various news accounts, including Pulliam, “Wired on Wall Street.”
170 Timeline on the 3Com trade and the various players in the Zvi Goffer circle of friends from Kevin McCoy and Laura Petrecca, “Today ‘Octopussy’ among 14 facing charges for insider trading,” USA Today, November 6, 2009.
172 Conversations between Zvi Goffer, Michael Kimelman, and Slaine from government’s sentencing memorandum re: David Slaine.
173 Zvi Goffer as Octopussy and his “you” and “me” cell phones from Tom Hays, “‘Octopussy’ Zvi Goffer, 6 Others Plead Not Guilty to Insider Trading Scheme,” Huffington Post, February 2, 2010.
CHAPTER 9: ODD COUPLES
175 Rajaratnam’s recorded conversation with Roomy Khan from motion filed by Rajaratnam’s lawyers to suppress wiretap evidence.
181 Background on Sanjay Wadhwa from David Leonard, “The SEC: Outmanned, Outgunned, and on a Roll,” Bloomberg Businessweek, April 19, 2012.
182 Anil Kumar’s business relationship with Rajaratnam from George Packer, “A Dirty Business,” New Yorker, June 27, 2011.
185 Danielle Chiesi conversation with Rajaratnam from Katya Wachtel, “AUDIO: Listen to Raj And Danielle Chiesi Revel in Their Trading of Akamai Stock Ahead of a Public Guidance Announcement,” April 5, 2011.
185 Background on Chiesi from various news accounts, including Packer, “A Dirty Business.”
186 Slaine telling government investigators that Rajaratnam liked “pretty girls” from author interviews and David Glovin and David Voreacos, “Dream Insider Informant Led FBI from Galleon to SAC,” Bloomberg, December 3, 2012.
187 Background on Robert Moffat, Chiesi, and Hector Ruiz and how their circle operated from author interviews with law enforcement officials, and published reports, including James Bandler and Doris Burke, “Dangerous Liaisons at IBM: Inside the biggest hedge fund insider-trading ring,” Fortune, July 6, 2010.
188 More detail on Chiesi and how Bear Stearns investigated her trades from author interviews and various news accounts, including Anthony Effinger, Katherine Burton, and Ian King, “Woman Who Sank Galleon Was Beauty-Queen-Turned-Analyst Insider,” Bloomberg, November 22, 2009.
189 Chiesi’s work on AMD Middle Eastern deal from author interviews, Bandler and Burke, “Dangerous Liaisons at IBM,” and various news accounts.
189 Conversation between Rajaratnam and Chiesi where he urges her to keep quiet from author’s review of transcripts and various news accounts, including “Tapes in Rajaratnam Trial Allege Affair, Cover-Up, Third McKinsey Player,” Finalternatives, March 15, 2011.
190 Chiesi’s conversations with Rajaratnam about information she received from Kieran Taylor from various news accounts on tapes played at court hearings and Michael J. de la Merced, “Taped Calls About Akamai Earnings Guidance Heard at Galleon Trial,” New York Times, April 4, 2011. Also see Kaja Whitehouse, “Racy Insider Tapes; Ex-Trader Raj Chats Speak Volumes,” New York Post, April 5, 2011.
CHAPTER 10: SOMETHING GOOD IS GOING TO HAPPEN
194 Background on Kumar and Rajaratnam relationship from author interviews, Packer, “A Dirty Business,” and various news accounts, including Peter Lattman and Azam Ahmed, “A Circle of Tipsters Who Shared Illicit Secrets,” New York Times, May 11, 2011.
195 Rajaratnam conversations with Rajat Gupta and background on Gupta from various news accounts, author interviews, and Stephen Grocer, “Rajat Gupta’s Career in a Timeline,” Wall Street Journal, June 15, 2012. See also Packer, “ A Dirty Business.”
198 Buffett’s “fifteen dollars a second” boast on his Goldman investment made to Liz Claman of the Fox Business Network.
203 Background on new SEC enforcement chief Robert Khuzami from various news accounts and author interviews with Khuzami.
205 Choo-Beng Lee’s statement to FBI from author interview; how he was caught through Chiesi wiretap from author interview and various news accounts, including Peter Lattman, “Trail to a Hedge Fund, from a Cluster,” New York Times, December 5, 2012.
207 Chiesi worried she might get caught like “Martha fucking Stewart” from Jessica Pressler, “Rajaratnam and Danielle Chiesi Plead Not Guilty to Insider Trading,” New York Magazine, December 21, 2009.
207 Lee’s advice to Kang to begin looking at expert networks from author interviews with government investigators and various news accounts.
210 Rajaratnam’s involvement in film project and customs office tipping he might leave the country from author interviews with government investigators and various news accounts, including Jodi Xu, “Galleon’s Raj Rajaratnam a No-Show at Film Fest,” Wall Street Journal, November 12, 2009. See also Susan Pulliam, “Fund Chief Snared by Taps, Turncoats,” Wall Street Journal, December 30, 2009.
210 Rajaratnam’s plan to travel to Geneva from Zachery Kouwe, “Rajaratnam Planned Business Trip Before Arrest,” New York Times, October 23, 2009.
CHAPTER 11: POUNCE HARD
213 Rajaratnam’s arrest and FBI interrogation from author interviews with government officials and various news accounts, including most prominently Suketu Mehta, “The Outsider,” Newsweek, October, 23, 2011.
215 Details of Chiesi’s arrest from author interviews with government officials and various news accounts.
216 Details of Drimal’s arrest from author interviews and various news accounts, including Susan Pulliam, “When the Feds Are Watching,” Wall Street Journal, April 28, 2011.
219 Details on expert networks and Anthony Longoria from author interviews with government investigators, court documents, and various news accounts, including Patricia Hurtado, “Rajaratnam Arrest Made ex-AMD Worker ‘Paranoid,’ He Tells Jury,” Bloomberg, September 14, 2011.
222 Preet Bharara’s speech to the New York City Bar Association from author interviews and various news accounts, including Mark DeCambre, “Taped crusader: U.S. Atty pushes wiretaps, rails vs. insider trading,” New York Post, October 22, 2010.
224 Background on Preet Bharara and his brother, Vinnie, from Bharara speech in June 2011 attended by author, as well as author interviews and Jason Horowitz, “Federal prosecutor Preet Bharara builds a reputation on Wall Street, in Albany,” The Washington Post, April 4, 2013, and Peter Lattman, “The Fabulous Bharara Boys,” New York Times, June 14, 2011.
CHAPTER 12: NEVER LET A GOOD SCANDAL GO TO WASTE
227 FBI’s growing angst over Preet Bharara’s media strategy from interviews with government investigators with direct knowledge of the matter.
232 Noah Freeman’s comments to the FBI about pressure to give Cohen the best information even if it means insider information from author interviews and Patricia Hurtado, “Ex-SAC Capital Manager Tells FBI Fund Used Insider Data,” Bloomberg, Oct. 2, 2012.
232 Relationship between Noah Freeman and Winifred Jiau and the inner workings of SAC including Freeman’s relationship with Cohen from author interviews and various news accounts, including Azam Ahmed and Peter Lattman, “Expert Network Consultant Is Convicted in Insider Trading Case,” New York Times, June 20, 2011; Peter Lattman, “Trail to a Hedge Fund, from a Cluster,” New York Times, December 5, 2012. See also Kaja Whitehouse, “Beef & lobster source: SAC staff pooh-poohed expert Winnie,” New York Post, June 7, 2011.
234 Jiau’s incarceration from author interviews and Walter Pavlo, “Winifred Jiau Prison Sentence: What Is The Message For Wall Street?” Forbes, September 13, 2011.
235 Jon Streeter’s view of insider trading from author interviews with government investigators.
238 Rajaratnam lawyer Dowd’s arguments to get wiretaps thrown out of court from author interviews and various news accounts, including Kaja Whitehouse, “Galleon Wiretaps Ruckus,” New York Post, October 7, 2010.
240 Judge Richard Holwell’s thought process regarding the wiretap evidence and the advice from his law clerk from author interviews with people who have direct knowledge of the matter.
&nb
sp; 242 Holwell’s decision to allow wiretaps from author interviews and various news accounts, including Jonathan Stempel, “Galleon’s Rajaratnam Loses Wiretap Suppression Bid,” Reuters, November 24, 2010.
243 Details of FBI meeting with John Hollander from author interview with Hollander’s attorney and people who have spoken directly with Hollander.
CHAPTER 13: THE LUCKIEST MEN IN LAW ENFORCEMENT
247 Jon Streeter’s “nightmare” from author interviews with people with direct knowledge of the matter.
248 Rajaratnam’s Goldman trades from various news accounts, including David Glovin, Patricia Hurtado, and Bob Van Voris, “Galleon’s Rajaratnam Talked on Tape About Goldman Board,” Bloomberg, March 31, 2011.
251–252 Rajiv Goel’s tapped telephone calls with Rajaratnam from court records and “Wiretaps Captivate Jurors at Galleon Insider Trading Trial,” Associated Press, March 27, 2011.
254 Cross-examination of Anil Kumar from author interviews and various news accounts, including “Insight: Rajaratnam Lawyer: Information Public, Not Secret,” Thomson Reuters News, March 16, 2011.
256 Rajaratnam appeal strategy from people with direct knowledge of the matter.
263 The record of SEC enforcement chief Robert Khuzami from various news accounts, including Ben Protess, “Khuzami, S.E.C. Enforcement Chief Who Reinvigorated Unit, to Step Down,” New York Times, January 9, 2013. See also SEC press release, “Enforcement Director Robert Khuzami to Leave,” January 9, 2013.
CHAPTER 14: STEVIE IS WORRIED
268 George Sard’s media strategy from author interviews.
272 Steve Cohen’s remarks during his deposition in the Fairfax Financial case from author’s review of the transcript and Jennifer Ablan, “Stevie Cohen Unplugged,” Reuters, December 13, 2011.
273 Cohen’s deposition in Fairfax case from author interviews and Greg Farrell, “SAC’s Cohen May Face SEC Suit as Deposition Hurts Case,” Bloomberg, February, 19, 2013.
273 Grassley pressing the SEC about its handling of SAC suspicious trading referrals from Peter Lattman, “New Scrutiny for S.E.C. and Trades at SAC Capital,” New York Times, May 24, 2011.
275 Cohen’s appearance remarks during 2011 SALT conference from author interviews, various news accounts, and Steve Eder and Gregory Zuckerman, “Steven Cohen Says His Hedge Fund Firm Takes Compliance ‘Very Seriously,’” Wall Street Journal, May 11, 2011.
275 Cohen’s comments to his friend Richard “Bo” Dietl from author interview with Dietl.
283 Kinnucan’s comments about FBI and emails to various people involved in the case from author interviews.
283 Backgound on John Mulheren from Den of Thieves (New York: Simon & Schuster, 1991).
286 Slaine’s “outing” by the Wall Street Journal, his mental state, and the impact on Drimal as Slaine received his sentence from author interviews and various news accounts including Susan Pulliam, “Wired on Wall Street: Trader Betrays a Friend,” Wall Street Journal, January 16, 2010. See also David Glovin and David Voreacos, “The Tale of a Wall Street Trader Turned FBI Spy,” Bloomberg Businessweek, December 6, 2012.
287 Drimal’s sentencing and the reasons for it from Chris Dolmetsch and Patricia Hurtado. “Ex-Galleon Trader Drimal Should Get 70- to 80-Month Prison Term, U.S. Says,” Bloomberg, August 25, 2011.
288 Kinnucan’s shifting account on who the FBI wanted him to wiretap from author interviews with Kinnucan and various news reports, including Courtney Comstock, “John Kinnucan: SAC Capital’s Michael Steinberg Was NOT Who I Was Asked to Record,” Business Insider, December 9, 2010.
289 Freeman’s comments to the FBI about insider trading at SAC from Hurtado, “Ex-SAC Capital Manager Tells FBI Fund Used Insider Data,” Bloomberg, October 2, 2012.
CHAPTER 15: HARPOONING THE WHALE
293 Kinnucan’s arrest and sentencing from Justice Department charging documents and from Chad Bray and Susan Pulliam, “Once-Defiant Insider: ‘I’m Sorry’ Kinnucan Sentenced to 51 Months in Prison, Called ‘Cautionary Tale’ on Fighting the Government,” Wall Street Journal, January 15, 2013.
296 Details of the FDA’s decision to nix Qnexa in 2010, SAC’s short position on the stock, and ultimate approval and name change from author interviews with people directly involved in the matter; FDA panel minutes, various news accounts including from Jennifer Corbett Dooren, “FDA Panel Rejects Weight-Loss Drug,” Wall Street Journal, July 16, 2010. Also see Daniel J. DeNoon, “Advisory Panel Votes Against Drug’s Approval Because of Potential Side Effects,” WebMD Health News, July 15, 2010.
297 Details about increased occurrence of birth defects from Qnexa from North American Antiepileptic Drug Pregnancy Registry, Winter 2009 issue.
301 Details of SAC probe and how it got started from author interviews with investigators and from David Glovin, David Voreacos, Bob Van Voris, and Patricia Hurtado, “SAC Insider Probe Rides a Referral Into Cohen’s Orbit,” Bloomberg News, November 26, 2012.
305 How Wadhaw and Kang began the Elan/Wyeth probe from author interview with government investigators and Sheelah Kolhatkar, “Where Hedge Fund Mogul Steve Cohen Learned to Trade,” Bloomberg, December 7, 2012.
305 Details of Sidney Gilman’s Wall Street work from interviews with government investigators, expert network officials, and Nathaniel Popper and Bill Vlasic, “Quiet Doctor, Lavish Insider: A Parallel Life,” New York Times, December 15, 2012.
305 Gerson Lehrman insider trading policy and how much Sidney Gilman was paid from author interview and various publications including Andrew Ross Sorkin, “Knowledge Is Money, but the Peril Is Obvious,” New York Times, November 26, 2012.
306 Details on beginning of Martoma/Gilman probe from author interviews with investigators, government documents, and Tom Randall and Elizabeth Lopatto, “Wyeth, Elan Alzheimer’s Drug Tarnished by Side Effect in Study,” Bloomberg News, July 30, 2008.
309 Details of Martoma’s questioning and Gilman’s cooperation from author interviews with government officials and Sheelah Kolhatkar, “On the Trail of SAC Capital’s Steven Cohen,” Bloomberg Businessweek, January 17, 2013.
311 Cohen’s dinner with Bo Dietl and meeting with employees, from author interviews and Peter Lattman, “Trail to a Hedge Fund, from a Cluster,” New York Times, December 5, 2012.
312 Details on Horvath from Patricia Hurtado, “SAC Criminal Probe May Speed Up With SEC Allegations,” Bloomberg News, March 16, 2013.
312 Anxiety at the top ranks of SAC from author interviews and Michelle Celarier, “Mr. Shark Repellent: Cohen’s general counsel gives SAC boss cover,” New York Post, November 24, 2012.
313 Michael Steinberg’s possible arrest from author interviews and Kaja Whitehouse, “Hedgie holed up in hotel with hopes of not being cuffed at home: Sources,” New York Post, March 18, 2013.
317 Statement of SEC acting enforcement director George Canellos regarding Cohen from Jonathan Stempel and Katya Wachtel, “Cohen’s SAC to pay $616 million in SEC insider trade settlement,” Reuters, March 15, 2013.
318 Eric Holder’s statement about too-big-to-fail from Peter Schroeder, “Big banks’ size complicates prosecution efforts,” The Hill, online, March 6, 2013.
INDEX
“The pagination of this electronic edition does not match the edition from which it was created. To locate a specific entry, please use your e-book reader’s search tools.”
A&P, 72–73, 74
Abdel-Rahman, Omar, 203
actionable information, 75, 82, 208, 220, 308
Adidas, 112
Agassiz, Rodolphe, 27–28, 323
Aguirre, Gary, 88–91, 184, 226, 228, 264, 323
AIG (American International Group), 142, 202
Ainslie, Lee, 233
Akamai, 185, 190–91
Akin Gump, 236, 256, 322
Albertson’s, 244, 245, 246
Amazon.com, 77, 160
AMD, 117, 122, 124, 125, 127, 181–82, 188–90, 195, 214, 220–21, 324, 328
analysts/researchers
>
bonuses for, 80
conflict of interest and, 43, 76, 78, 79
expert networks and, 209, 269–70
hedge funds and, 80–84
independent, 75, 80–84, 269–70
Internet bubble and, 76–79
as investment bankers, 75–80
SEC and, 78, 79
“sell-side,” 75
Spitzer investigation of, 111, 124
See also specific person or organization
Andre, Lionel, 57
Annan, Kofi, 196, 269
Anticevic, Sonja, 112
Apple, 208
ATI Technologies, 165–66, 182
average investors. See small/average investors
Axcan Pharma, 324
Babcock, Rob, 101, 102, 103–4, 106, 145, 146, 150, 178, 323
Bacanovic, Peter, 59, 61, 62, 323
Bain Capital, 170–71, 173, 324
bank accounts
Lyford hedge funds and, 101
tracking and finding suspicious, 56–57
bank/bankers, Wall Street: Pecora Commission and, 26–27
Banking Act (1933), 27
banks/bankers, Wall Street
analysts/researchers at, 75–80
bailout of, 142, 183, 197, 200, 203
commercial, 49
and confidence in markets, 15
FDIC insurance and, 49
financial crisis of 2008 and, 22, 27, 142–43, 183, 197, 202–5, 208, 263
growth of, 49
hedge funds as replacement for traditional investment, 50
leverage and, 22
mega-, 43, 49–50, 201
merging of commercial and investment, 201
offshore, 55
prevalence of insider trading and, 104
regulation of, 52–53, 143
risk-taking by, 15, 18, 22, 26, 49, 143, 148, 184, 201
SAC Capital and, 92
SEC image and, 184
as “sell side,” 147
and short-selling, 203
wall between research and, 80
See also specific person or bank
Barbarians at the Gate (Burrough), 265
Bear Stearns
Burrough Vanity Fair story about, 265–66
Circle of Friends Page 36
