Circle of Friends (48 page)

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

      CDSs and, 202

      Chiesi trades and, 188

      collapse of, 183, 185, 188, 202–3, 265–66

      financial crisis of 2008 and, 104–5, 142, 202–3

      Franklin circle of friends and, 103, 104–5, 325

      J.P. Morgan take over of, 185, 203

      lack of prosecution of executives at, 204

      New Castle Partners and, 185–86, 190, 324, 327

      and racism on Wall Street, 113

      risk-taking at, 105

      SEC and, 204

      
See also
Cayne, James “Jimmy”; Lyford Cay

Becker, Holly, 74

Berenson, Alex, 86

Berke, Barry, 313

Berkshire Hathaway, 126

Bernstein, Sanford, 204

Bharara, Preetinder “Preet”

      ambitions of, 225, 260

      at CCNY symposium, 258–59

      and Chiasson and Newman convictions, 288

      and cost of insider trading investigations, 258–59

      criticisms of, 259

      Dowd complaints about, 253–54

      elections of 2012 and, 300

      FBI relations with, 259–61

      and future insider trading arrests, 319

      Giuliani compared with, 225–26, 260

      image of, 18

      Kinnucan and, 233, 282, 284

      leaks about Rajaratnam and, 254

      as listening to wiretapped conversation, 259

      media statement about insider trading of, 222–26, 227, 228

      personal and professional background of, 224–25

      Rajaratnam investigation/trial and, 237, 239, 243, 254, 259, 260, 323

      reputation of, 224, 323

      Steinberg arrest and, 313

      Stillman research of, 309–10

      supporters of, 260

      
Time
story about, 259

      Wadhwa meetings with, 261

Bharara, Vinnie, 224

Biovail Corp., 92, 107, 271, 280–81, 307–8, 323–24

BlackRock, 68

Blackstone Group, 127, 134, 140, 162, 176, 180, 235, 244, 316, 317, 327

Blankfein, Lloyd, 131, 198, 215, 299

Blodget, Henry, 77–79, 324, 326

Bloomberg News, 154

blue sheets, 55, 56

Boesky, Ivan

      Cohen case compared with, 306

      as cooperator, 41, 51, 103

      fine for, 99

      Giuliani and, 51, 225

      as high-profile case, 40–41

      and image of inside traders, 55

      as inspiration for Funkhouser, 53

      Justice Department and, 142

      Lynch as lawyer for, 58

      Milken case and, 41–42

      misappropriation theory and, 47

      Mulheren attempt to kill, 283

      Pitt as attorney for, 33–34, 42

boiler rooms/bucket shops, 2, 24, 78, 184

Boston Stock Exchange, 27

Bowe, Michael, 92–93, 270–73, 307–8

Brasco, Donnie, 109

Broadband Research, 82, 222, 282, 326.
See also
Kinnucan, John

Brodsky, Reed, 131, 244–45, 246, 249, 251, 252, 258, 324

bucket shops.
See
boiler rooms/bucket shops

Buffett, Warren, 65, 87, 126, 198–99, 246, 248, 267, 283

Bulger, Whitey, 176

Burger Heaven (New York City), 170

Burger, Warren, 40

Burkle, Ron, 72, 73

Burrough, Bryan, 265–68, 275

Bush, George W., 18, 34, 89, 105, 183, 225, 237, 275

BusinessWeek
: Wadhwa profile in, 262

Butenhoff, Kurt, 100, 101, 104, 178

Buttonwood Agreement (1792), 21

Cady, Roberts & Co., 32, 325

Callahan, Matthew, 308–9

Canellos, George, 317

Carl Karcher Enterprises, 54–55, 326

Cary, William L., 30–33, 34, 36, 324

Catellus Development, 102

Cayne, James “Jimmy,” 67, 91, 92, 100, 105, 265

Chaisson, Anthony, 274

Chanos, James, 271

Charles Schwab, 126

Chaves, David

      Babcock-Franklin-Guttenberg circle and, 145, 146