Circle of Friends (49 page)

      Bharara comments about, 261

      and Bharara media speech and, 227

      Cohen/SAC Capital case and, 146, 179, 301

      cooperators and, 147, 156–57

      coordination of investigations and, 219

      and debate about insider trading, 13

      Douglas public announcement and, 260, 261

      Drimal case and, 171, 173, 174

      early career of, 145

      goal of, 146

      Goffer case and, 174

      hedge funds research of, 145–46

      Kinnucan case and, 233–34, 285

      Martha Stewart case and, 145

      and naming of Perfect Hedge, 174

      post-Rajaratnam investigation activities of, 258

      Rajaratnam/Galleon Group case and, 146, 199

      reputation of, 146

      and rivalries within FBI, 145, 160–61

      role in FBI investigations of, 324

      Slaine and, 4, 5, 150–51, 152, 154–55, 159–60, 169, 172, 173, 174, 216, 233, 286

      Steinberg arrest and, 313

      style/methods of, 4

      views about Wall Street/insider trading of, 14, 145, 146, 150, 318

Chellam, Kris, 175–76, 182

Chelsey Capital, 101, 103, 148, 150

cherry picking, 114, 116, 117, 124

Chiarella, Vincent, 37–39, 40

Chiasson, Anthony, 288, 313, 324

Chiesi, Danielle “Dani”

      Akami information and, 185, 190–91

      AMD and, 188–90, 328

      appearance of, 186

      Bear Stearns concerns about, 188–89

      Choo-Beng Lee and, 205, 326

      conviction of, 255

      FBI arrest of, 215–16

      Lee-Far connection and, 206

      Moffat and, 187–88, 189, 206, 327

      mosaic information and, 193

      motivation of, 195

      as New Castle analyst, 185–91, 324

      personal and professional background of, 187

      personality of, 187

      Rajaratnam investigation and, 182, 185, 187, 253, 326

      Rajaratnam payments for, 193

      Rajaratnam relationship with, 185–87, 188, 189–91, 193, 194, 195, 238, 255, 324

      and Rajaratnam wiretaps, 238, 242

      Ruiz and, 188, 189, 328

      suspicions about rats of, 207

      Taylor and, 190

      trial of, 242

      wiretaps on, 185, 187, 188, 205, 215, 242, 253

Choo-Beng Lee, Richard, 205, 206–7, 208, 209–10, 219, 220, 221, 276, 326

Christie, Chris, 300–301

Cioffi, Ralph, 106

Cisco, 162–63

Citadel Management Group, 82, 84, 221, 229, 230–31, 288, 324

Citigroup/Citicorp, 27, 34, 43, 49, 79, 142, 201, 316, 319, 325

City College of New York symposium: Bharara at, 258–59

CJS Partners, 152

Cliff Mining, 27–28

Clinton, Bill, 40, 72, 201, 236

Clinton, Hillary, 40

CNBC, 198, 230, 276, 279

Cohen, Alexandra, 106, 107, 266–67, 315

Cohen, Patricia, 106–9, 178

Cohen, Steve “Stevie”

      appearance and personality of, 86, 179, 271, 301, 311

      belief system of, 270–71

      Biovail case and, 307

      Bowe and, 270–73

      Burrough/
Vanity Fair
profile of, 265, 266, 267–68, 275, 277

      as celebrity, 17

      and change in regulations, 277

      Choo-Beng Lee and, 205, 206, 207, 209–10

      civil penalties paid by, 9

      Cohen (Patricia) allegations about, 106–9

      cooperators and, 87, 274, 275, 276, 302, 312

      coordination of government information about, 219

      CR Intrinsic and, 243–44, 279, 296

      defenders of, 69, 85–86, 246, 276–77, 278, 310, 311, 315, 316

      depositions of, 108–9, 270–74, 310

      Dietl dinner with, 311

      emails of, 304, 305, 306, 317

      expert networks and, 109

      FBI/Chaves/Kang interest and investigation of, 4, 9, 69, 85, 91, 92, 93–94, 97, 106–9, 146, 177–78, 179, 207, 219, 231–32, 244, 271, 299–300, 301, 304–5, 307, 308, 313–15

      financial crisis of 2008 and, 105, 180, 190

      and founding of SAC, 67, 279, 322

      Freeman and, 232, 289

      front-running charges and, 74

      Funkhouser and, 66, 68, 74, 94, 95, 178

      and GE-RCA deal, 108

      government strategy concerning, 298

      at Gruntal, 50, 67–68, 106, 108

      Hollander-Makol interview and, 243–46

      image of, 179, 266

      impact on SAC of indictment of, 319

      insider trading views of, 270–73

      Justice Department investigations of, 68, 85, 179, 268, 281, 304, 306

      Kinnucan and, 288

      lifestyle of, 91, 106–7, 179–80, 266, 316–17, 318

      low profile of, 66

      and Madoff comments about SAC Capital, 95

      Martoma case and, 9–10, 280, 306–7, 308, 309–10, 311–12, 314–15, 317, 319

      
Moby-Dick
analogy and, 302, 319

      NYSE sanctions against, 108

      organized crime compared with, 277

      Pathmark trades of, 72, 73, 85

      personal investment in SAC of, 315

      personal life of, 106–9, 179–80

      personal/professional background of, 50, 67–68, 86, 180–81

      political activities of, 300–301

      public interest in activities of, 200

      public relations efforts of, 265, 266–67, 274, 300–301, 318–19

      reputation of, 67, 68, 80, 83, 85–86, 94, 106, 271, 279, 324

      risk-taking by, 105

      role in SAC Capital of, 87–88, 243–44, 245, 271, 298

      SAC culture and, 87, 232

      and SAC sexual harassment case, 280

      as scapegoat, 267

      and SEC definition of insider trading, 264

      SEC deposition of, 108–9, 310

      SEC/Wadhwa interest in and investigations of, 69, 88, 97, 179, 219, 245–46, 262, 268, 270, 272–74, 277, 281, 301–2, 303–6, 307, 310, 312, 317

      
60 Minutes
story about, 266, 271

      and SkyBridge Capital conference, 274–75

      Slaine and, 3, 151, 178

      and small investors wariness, 318

      and statute of limitations on insider trading, 281, 317

      Steinberg and, 312, 314

      as target of law enforcement/regulators, 8, 9, 10, 228–29, 324

      trading patterns of, 66, 67, 68, 85, 91, 178

      trading style of, 68

      U.S. Attorney for the Southern District of New York and, 91, 94, 97, 243–46, 268, 302, 319

      views about Rajaratnam of, 267

      and Wall Street's 1990 business model, 50

      wealth of, 50, 68, 86, 91, 105, 281, 316–17

      wiretaps on, 9, 109, 177–79, 206, 273–74, 299–300, 303

      
See also
SAC Capital

Coleman, Eric, 297

collateralized debt obligations (CDOs), 201, 204

Collotta, Christopher, 101–2

Collotta, Randi, 101–2

Comey, James, 62, 257, 324

Common Stocks and Uncommon Profits
(Fisher), 123

confidence, investor, 12–13, 14–15, 19, 147, 200, 235, 318

conflict of interest: financial crash of 2008 and, 27

conflict of interest: analysts/researchers and, 43, 76, 78, 79

Conheeney, Tom, 275, 324

cooperators

      and comparison of organized crime with insider trading, 64

      FBI deals with, 156–57

      importance of, 64–65

      organized crime and, 133

      prison time for, 157

      as repeat offenders, 134, 139

      role in “Perfect Hedge” investigations of, 7–8

      and self-image of inside traders, 133

      wires (recording devices) on, 159

      wiretaps and, 164, 182

      
See also specific person or case

Corzine, Jon, 263

Cosby, Bill, 63

Countrywide Financial, 263

Cowdin, J. Cheever, 32

Cox, Chris, 105, 183, 201, 203, 261, 263

Cox, James, 11, 12–13

CR Intrinsic (SAC unit), 243–44, 279, 296

credit default swaps (CDSs), 48, 142, 202, 263

Curtiss-Wright Corp., 32–33

Customs and Border Protection, U.S., 210

Cutillo, Arthur, 173–74, 218, 324

Daily Beast
: Rajaratnam interview for, 251

Das, Manju, 195

Davis, Ellen, 259

Dean Witter, 42

Dell, 233, 276, 288, 312

democracy, 10–13, 201

Dennehy, Brian, 63

derivatives, 42, 83

Deutsch Bank, 200, 203, 258

Deutsch, Todd “Rain Man,” 167

DeVore, Daniel, 233

Diamondback Capital, 288, 312, 327

Dickey, Richard, 168

Dietl, Richard “Bo,” 180, 274, 275, 311

Dinallo, Eric, 79

Dirks, Raymond “Ray,” 33, 34–36, 39–40, 324

doctors: expert networks and, 51, 208, 307–8

Dorito bags: payoffs in, 101, 106, 145

Dorsey & Whitney, 43

Douglas, Michael, 260–61

Dow Jones & Co.: News Corporation purchase of, 95

Dowd, John, 236–37, 238–43, 250–51, 252, 253–55, 256, 324

Dreier, Marc, 235

Drexel Burnham Lambert, 40, 55, 108, 319, 326, 327, 328

Drimal, Arlene, 216, 293

Drimal, Craig

      arrest/sentencing of, 217, 231, 286, 291, 324

      and Bain Capital-3Com deal, 170–71

      Chaves and, 171, 173, 174

      FBI and, 166–68, 171, 216–17, 218

      financial affairs of, 294

      Goffer and, 173

      Justice Department and, 217

      Makol and, 165, 167–68, 170, 171, 173, 174, 216–17

      personal life of, 167, 217, 294

      personality of, 167

      professional background of, 166

      Rajaratnam/Galleon case and, 150, 157–58, 166, 167, 169, 218, 285

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

      wiretap on, 171, 217, 218

Duer, William, 21–22, 49, 324

“edge”

      Bharara comment about, 223

      history of trading and, 21

      importance to hedge funds of, 3, 65, 80, 94–95

      as inside information, 3

      of Khan, 162

      of Rajaratnam, 180

      of SAC, 9, 10, 80, 206, 271–72, 281, 294, 297, 300–301, 318

      of Slaine, 2

Efficient Markets Theory, 13–14

Elan, 280, 303, 305, 306, 307, 311

elections of 2012, 298–99, 300–301

emails

      of Cohen, 304, 305, 306, 317

      of Dowd, 253–54

      flipping Khan and, 134, 138, 139–40

      Freeman and, 232

      Gilman-Martoma, 310

      Khan deletion of, 162, 176

      of Kinnucan, 229–30, 231, 233, 234, 282, 283, 284, 285, 287, 292, 293, 326

      Rajaratnam and, 117, 123, 125, 126, 130, 256, 301

      at SAC Capital, 279, 304, 305

      Spitzer analyzer investigation and, 124

Enron, 34, 43, 271

Equal Employment Opportunity Commission (EEOC), U.S., 279–80

Equity Funding, 36, 39

Erbitux (drug).
See
Stewart, Martha

ETFs (exchange-traded funds): debate about insider trading and, 14–15

ethnicity: and Rajaratnam case, 180–81

expert networks

      analysts/researchers and, 269

      Bharara speech and, 228

      Cohen/SAC Capital and, 94, 109, 209, 232

      compliance training of, 308

      conviction and sentencing of, 288

      corruption of, 307

      decline of, 257, 269

      definition of insider trading and, 264

      doctors and, 51, 208, 307–8

      FBI and, 229

      fees for, 209

      Freeman case and, 232

      future of, 319

      government investigations of, 220

      hedge funds and, 75, 81, 207–9, 219, 220, 222, 227–28, 257, 269

      importance of, 75

      and individual's relationship with employer, 219, 220

      Kinnucan and, 222

      law enforcement learns about extent of, 207–9

      
Moby-Dick
analogy and, 319

      mosaic information and, 83, 257

      Rajaratnam/Galleon Group case and, 209

      Wadhwa investigations of, 208–9, 262

      
See also specific organization

Fabrikant, Geraldine, 86

Facebook: IPO for, 16, 263, 318