Circle of Friends (51 page)

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

      Whitman and, 162–63, 176, 292

      wiretaps on, 163–64, 165, 181, 184

      Xilinx and, 175–76

Khan, Sakhawat, 134

Khuzami, Robert, 200, 203–5, 262–63, 264–65, 317, 326

Kimelman, Michael, 172, 218

Kinnucan, Catherine, 222, 230, 291, 292–94

Kinnucan, John

      Ainslie and, 233

      arrest/conviction of, 270, 285, 287, 291–93, 294, 326

      Bharara comments of, 233, 282

      Chaves and, 233–34

      Citadel and, 82, 84, 221, 229, 230–31, 288

      clients of, 84, 221, 229–31

      cost of insider trading to, 284–85, 287

      and definition of insider trading, 283

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

      evidence against, 293, 294

      expert networks and, 221–22

      FBI and, 221–22, 229–30, 233–34, 282, 284, 285, 288, 291–93

      financial affairs of, 82, 96, 292

      Freeman and, 234

      as independent research analyst, 80, 82

      Justice Department and, 233

      Makol and, 222, 229–30, 284, 291, 293, 294

      mosaic information and, 83

      
New York Times
column of, 230

      as non-cooperator, 282, 285, 287, 292

      payments for, 233

      personal life of, 294

      and prevalence of insider trading, 233

      professional background of, 82, 221

      SAC Capital and, 82, 84, 94, 222, 229, 230–31, 234, 288

      self-image of, 230, 234, 284

      Shimoon and, 83, 234, 282, 326

      Slaine compared with, 285

      as “victim,” 230

      views about insider trading of, 283

      wiretaps on, 222, 284, 294

Klein, Joshua, 128, 307

Klotz, Martin, 270, 271, 280–81

Knight Capital, 263

Komansky, David, 113

Kumar, Anil

      FBI arrest of, 216

      Gupta and, 195–96

      at McKinsey & Co., 126, 193, 194, 326

      payments for, 194–95

      personal background of, 194

      personality of, 194

      Rajaratnam and, 126, 127, 180, 182, 188, 189, 193–95, 196, 252, 254–55, 326

      Wadhwa/SEC and, 194, 195–96

      wiretaps on, 182

Kurland, Mark, 185–86, 187, 188, 189, 216, 326

law enforcement/regulators

      accomplishments of, 8, 16

      expert networks and, 227–28

      financial crisis of 2008 and, 223, 226, 258, 264, 318

      hedge funds views about inadequacy of, 96

      inepitude of, 143

      insider trading as focus of, 2–3, 10, 17, 18, 19, 76, 106

      motivation of, 146–47

      in 1990s, 51

      obstacles faced by, 96

      sharing of information among, 96–97

      
See also specific person, agency or investigation

Lawsky, Benjamin, 112–13, 224, 326

leaks

      and Aguirre-Mack-Samberg, 89

      and Drimal-3Com deal, 171

      Giuliani and, 260

      Goffer and, 172, 173

      and Goffer-Drimal-Slaine hedge fund, 172

      about high profile cases, 260

      about Kinnucan email, 230

      about Pitt, 34

      and SAC Capital-A&P-Pathmark deal, 73, 74

      about Slaine, 285

      about Steinberg arrest, 313

Lee, Richard Choo-Beng.
See
Choo-Beng Lee, Richard

Lehman Brothers, 142, 183, 197, 203, 204, 299.
See also
Fuld, Dick

Level Global, 274, 288, 312, 322

leveling of the playing field, 26, 28–29, 30–31, 36

leverage, 22, 49, 68, 92, 94, 186

Levin, Carl, 299

Levine, Dennis, 40, 55, 108, 306, 326

Levitt, Arthur, 48, 51, 201

Lewis, Joe, 100, 101

Li, David, 96

Lieberman, Joe, 152

Loeb, Dan, 271

Longoria, Mark Anthony “Tony,” 219–21, 233, 269, 326

Longueuil, Donald, 231, 276

Ludwig, Jonathan, 86, 88

Lyford Cay, 99–101, 323, 326

Lynch, Gerard, 41, 58, 164–65, 183, 238, 239, 242, 327

Mack, John, 88–89, 90, 203, 228

Madoff, Bernard “Bernie”

      assets of, 115

      conviction/imprisonment of, 16, 227, 256

      and debate about insider trading, 11–12, 13, 18

      Equity Funding case as foreshadow of, 35

      FBI funding and, 183

      and focus of law enforcement, 147

      investors' cost of activities of, 11–12

      Justice Department and, 144

      Kang and, 143

      law enforcement ignoring of warnings about, 11, 12, 13, 18, 110, 143–44, 184