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
Griffi
n, 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
Hoover, J. Edgar, 144, 228
Horvath, Jon, 276, 288, 298, 312, 314
IBM, 187, 189
Imclone. See Stewart, Martha
independent analysts/researchers, 75, 80–84, 94, 269–70. See also specific person
Indian School of Business
founding of, 195
Gupta speech at, 249
informants. See cooperators
information
actionable, 75, 82, 208, 220, 308
as central to Wall Street 1990s business model, 50–51
law enforcement sharing of, 96–97
small/average investors access to, 91
See also analysts/researchers; expert networks; inside information; mosaic information; research
inside information
definition of, 33, 148
“edge” as, 3
and sharing among friends, 102
See also insider trading
Inside Job (documentary), 223
inside traders
arrogance as typical of, 54, 133
code of conduct of, 219
foreign origins of, 234
low profile of, 65–66
punishment for, 235
self-image of, 133
Slaine as prototype of, 152
transferring of money among, 55
typical image of, 53–54, 55
wives of, 294
See also specific person
insider trading
cost of investigations about, 258
debate about, 11–18, 183, 327
defense of, 11, 12–13, 31
definitions of, 1, 10, 34–35, 36–37, 38, 62, 63, 263–64, 272–73, 283–84
difficulty of prosecuting cases about, 64, 74, 84, 88, 131–32, 237, 240
Douglas public announcement about, 260–61
first criminal prosecution for, 38
as focus of law enforcement, 2–3, 10, 17, 18, 19, 76, 106, 143
future of, 318–20
Great Depression and, 23–29
largest number of arrests in one day for, 216
market efficiency of, 31
in 1960s, 29–32
in 1980s and 1990s, 40–45, 52, 55, 57–65
organized crime compared with, 64–65, 109, 146, 219, 243, 257
penalties imposed for, 31, 155, 157
politics and, 19, 205, 223–24
pre-World War II history of, 21–29
prevalence of, 95, 104, 233
public views about, 15–16
publicity about, 222–26, 227–31, 232, 233–34
rape punishment compared with, 155
as “sexy” cases, 18, 144
small/average investors views about, 318
statute of limitations on, 281, 302
as systemic, 2–3, 55
as victimless crime, 235
as world’s oldest economic crime, 2
See also specific person, agency, or topic
Insider Trading and the Stock Market (Manne), 31, 325
institutional investors, 16
Intel, 126, 128, 177, 182, 214, 252, 283, 325, 326
interest rate swaps, 48
International Conference on Alzheimer’s Disease, 304, 305
Internet bubble, 34, 76–79
IPOs (initial public offerings), 16, 42–43, 76, 263, 318
Isenberg, Jerry, 116
Jacobs, Richard, 130, 144–45, 160–61, 219, 326
Janus, 221
Jiang, Ping, 93, 279–80
Jiau, Winifred, 232–33, 234, 278, 326
J.P. Morgan, 56, 113, 185, 203
junk bonds, 42
Justice Department, U.S.
Bharara relations within, 259, 260
and cost of insider trading investigations, 183, 258
and crackdown on financial crimes, 223
and debate about insider trading, 18
and definitions of insider trading, 273, 283–84
FBI relationship to, 227
financial crisis of 2008 and, 143, 226, 253
focus on insider trading within, 12, 143
Franklin circle of friends and, 103
funding/resources for, 47–48, 144
Goodwin complaints and, 28
“pump and dump” and, 24
rivalries within, 227
SEC/Wadhwa relations with, 127, 128, 239, 262
SEC wiretaps and, 184
and self-regulation of banks, 52
and sharing of information among law enforcement agencies, 96–97
strengths of, 97
tracking/surveillance systems of, 106
and “unindicted co-conspirators,” 288
wiretaps by, 177, 183
See also U
.S. attorney for the Southern District of New York; specific person or case
Kang, B.J.
Biovail case and, 307
Choo-Beng Lee and, 206–7
and Cohen (Patricia), 106–9, 178
Cohen/SAC Capital case and, 92, 93, 97, 106–9, 177–78, 207, 209, 271, 299, 301–3, 304–5, 307, 308
commitment to enforcing laws about insider trading of, 14, 318
cooperators as specialty of, 92, 102, 133, 134
coordination of investigations and, 219
experience of, 293
expert networks and, 207
Far and, 207
Freeman case and, 231, 232
as Jacobs team member, 145
Khan case and, 7, 14, 128, 130, 132–34, 135, 137–41, 162, 177, 301
Kinnucan case and, 293
Madoff case and, 143
Martoma case and, 307, 308–9
personality of, 92
post-Rajaratnam investigation activities of, 258
promotions for, 309
Rajaratnam/Galleon Group case and, 14, 118, 128, 130, 145, 167, 183, 199, 206, 209, 210, 211, 213–15, 239–40, 241, 242, 302, 326
Rajaratnam wiretaps and, 163–65, 177, 239–40, 241, 242, 253
reputation of, 92, 112
and rivalries within FBI, 160–61
style of, 92
Wadhwa and, 161, 177, 211, 301, 302–3, 304–5
and Wadhwa presentation about Khan-Rajaratnam, 128
Kanjilal, Debasis, 76–78, 326
Karcher, Carl, 54–55, 326
Kasowitz, Benson, Torres & Friedman, 270. See also Bowe, Michael
Keefe Bruyette & Woods, 57, 325, 327
Kennedy, John F., 23, 29, 30
Kennedy, Joseph P., 23–25, 26, 29
Khan, Roomy
credibility of, 129–30, 131–32
deletion of emails by, 162, 176
“edge” of, 162
FBI flipping of, 132–35, 137–41
as FBI informant, 118, 124, 128–30, 132–35, 137–41, 145, 160, 161, 163, 175–76, 181
financial affairs of, 134–35, 138, 162
Hilton Hotel and, 162, 165, 176, 234, 328
Justice Department investigation of, 129, 139, 140, 163
Kang and, 7, 14, 130, 132, 133–35, 137–41, 162, 177, 301
lifestyle of, 134–35, 138, 141
limitations of, 182
Moffat and, 206
personal and professional background of, 134, 138, 139
psychic mole-on-her-face story about, 251
Rajaratnam investigation and, 7, 14, 118, 123–26, 129–30, 132, 161, 163–64, 165, 168, 175–76, 177, 181, 182, 184, 251, 252, 292, 301, 326
Rajaratnam relationship with, 127, 128–29, 130, 132, 138, 161, 162, 164, 175–76, 181, 186, 188, 251, 255
as repeat offender, 138, 139, 176
and SEC limitations, 184
sentence of, 292
Shah and, 176, 235, 328
Shankar and, 218
trades of, 127, 128, 162–63, 165, 176, 181, 188, 205, 234, 328
U.S. Attorney for the Southern District of New York, 161
Wadhwa investigation of, 128–29, 130, 177, 181
Circle of Friends Page 38
