Circle of Friends (52 page)

      Rajaratnam and Gupta compared with, 250

      SAC Capital comments by, 95

      SEC and, 11, 12, 13, 111, 144, 184, 200, 201, 262–63

      and SEC definition of insider trading, 264

      Streeter prosecution of, 235

      as turning himself in, 11, 13, 143

mail and wire fraud, 41, 42

Makol, David

      commitment to enforcing laws about insider trading of, 318

      cooperators and, 102, 103, 133, 145, 147, 327

      coordination of investigations and, 219

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

      expert networks and, 222

      Franklin circle of friends and, 103

      Goffer and, 174

      Hollander and, 243–46

      Kinnucan case and, 222, 229–30, 284, 291, 293, 294

      Martha Stewart case and, 152

      Pajcin case and, 112–13

      personal and professional experience of, 152, 293, 327

      post-Rajaratnam investigation activities of, 258

      Rajaratnam case and, 167, 199

      reputation of, 112, 153, 327

      and rivalries within FBI, 160–61

      SAC case and, 312

      Slaine and, 1, 5–6, 150, 153–55, 156, 167–69, 170, 173, 177, 186, 216, 286

      style/methods of, 153

      Wadhwa and, 112, 128

      and Wadhwa presentation about Khan-Rajaratnam, 128

Mandvi, Aasif, 210

Manne, Henry, 31, 327

Market Street Advisors, 206

Markopolos, Harry, 144

Markowitz, David, 119, 121, 123, 125, 327

Martoma, Mathew, 9–10, 280, 304, 305–7, 308–11, 312, 314–15, 317, 319, 323, 327

Marvell Technology, 232, 278

Massachusetts Supreme Judicial Court: Goodwin complaints and, 28

Maverick Capital, 233

McCain, John, 200

McCarthy, Jim, 253, 254

McDermott, James, 41, 57–59, 61, 103, 323, 327

McKinsey & Co., 8, 126–27, 180, 182, 193, 194, 196, 199, 287, 326, 327

Meeker, Mary, 149

Mehta, Suketu, 214

mergers and acquisitions, 51–52, 55, 56, 65, 95, 102.
See also specific merger or acquisition

Merrill Lynch

      Blodget at, 77–78

      financial crisis of 2008 and, 142

      forklift driver-
BusinessWeek
case and, 152–53

      Kanjilal case and, 76–78

      and Martha Stewart case, 59

      Martha Stewart case and, 59, 64

      O'Neal resignation from, 141–42

      Orange County bankruptcy and, 42

      Pajcin-Plotkin case and, 113

      and race on Wall Street, 113

      and racism on Wall Street, 113

      Rajaratnam case and, 131, 215

      SEC cases against, 34

      Slaine at, 147

      Zamansky case and, 78

MF Global, 263

Michaelson, Andrew, 118, 121, 123, 124, 249, 262, 327

Microsoft, 90, 91, 196

Milken, Michael, 40–42, 51, 55, 58, 225, 268, 316, 319, 327

Milos restaurant (New York City), 311

misappropriation theory, 40–41, 42, 44, 47, 58, 62, 63, 64

Moby-Dick
analogy, 302, 319

Moffat, Robert, 187–88, 189, 206, 215, 216, 327

money-market funds: wealth effect and, 15

Moody's Investors Service, 128, 162

Moore, Michael, 71

Morgan Stanley

      Collotta at, 102

      Facebook IPO and, 16

      Franklin circle of friends and, 102, 103, 104

      Heller-GE deal and, 90

      IPOs and, 16, 42–43

      Lyford Cay circle of friends and, 100

      Pitt-SEC case against, 34

      Slaine at, 2, 147, 149, 150–51, 154, 168, 326

      
See also
Mack, John

Morvillo, Bob, 63, 64

mosaic information

      “channel checks” and, 140

      characteristics of, 39

      Chiesi and, 193

      and definitions of insider trading, 284

      and difficulty of prosecuting insider trading cases, 96, 237

      expert networks and, 257

      as explanation for suspicious trades, 257

      of FBI, 181

      Fisher theory about, 123

      importance of, 83

      Khan case and, 140

      Rajaratnam/Galleon Group case and, 122, 123–24, 126, 181, 182, 190, 238, 250, 255

      SAC Capital and, 94

      SEC views about, 123–24

Mozilo, Angelo, 262, 263

Mubadala Development Co., 188–89

Mukasey, Marc, 310

Mulheren, John, 283

mutual funds

      debate about insider trading and, 14–15

      investor confidence and, 15

      as Kinnucan clients, 84, 221, 229, 231

      SEC regulation of, 82–83

Naftalis, Gary, 269

Nasdaq

      bursting of Internet bubble and, 79

      collapse of, 34, 43, 60

      enforcement staff at, 48, 56

      Facebook IPO and, 263

      Grubman case and, 79, 80

      self-regulation staff at, 52, 53

      trading volume at, 50

      Zamansky lawsuit and, 78

National Association of Security Dealers (NASD), 52, 54, 74

National City Bank, 27

Needham & Co., 114, 115, 205

Netscape, 76

New Castle Partners, 185–86, 187, 188, 189, 190, 191, 322, 324, 327

New Deal, 28–29

New Jersey Supreme Court: Fairfax-SAC case and, 270

New York
magazine: Cohen story in, 107

New York Post
, 72, 223, 227, 280, 316–17

New York Stock Exchange

      Cohen sanction by, 108

      creation of, 21

      enforcement staff at, 48

      Khuzami investigation of trading at, 203

      SEC tips from, 262

      self-regulation and, 52

      surveillance unit at, 303

      trading volume at, 30, 50

      Wadhwa case involving hedge funds access to information from, 262

New York Times
, 86, 88, 89, 113, 230

NewCastle Partners, 187, 188

Newman, Todd, 288, 327

News Corporation, 95

Newsweek
magazine: Rajaratnam story in, 213, 214

Nussbaum, Peter, 277

Nvidia, 150–51, 232, 312

Obama, Barack, 17, 18, 142, 199–200, 205, 223, 224, 225, 298–99, 300

“October Surprise” (2012), 299

“Octopussy.”
See
Goffer, Zvi

offshore bank accounts, 55

O'Hagan, James Herman, 43–45, 47, 51, 58, 62, 63, 327

Omnibus Crime Control and Safe Streets Act (1968), 238–39, 241, 242, 257

one-party consent law, 159

O'Neal, Stan, 113, 141–42

Oppenheimer, 77

Orange County, California: bankruptcy of, 42

organized crime/drug cases

      Giuliani prosecutions of, 181

      informants and, 133, 139

      insider trading compared with, 64–65, 109, 146, 219, 243, 257

      SAC compared with, 277

      wiretaps and, 131, 145, 163, 164, 236, 256

The Other Side of Wall Street
(Harrison), 149

Oyster Bar (New York City), 100

Pajcin, David, 112–13

Palmisano, Sam, 187

Pandick Press.
See
Chiarella, Vincent

Pasternak, Mariana, 59, 60, 63

Pathmark, 71–74, 85

Paulson, Hank, 113

Pecora (Ferdinand) Commission, 26–27, 28, 327

Pecos Trading, 195

Pequot Capital, 89–90

Perfect Hedge

      accomplishments of, 6–7, 8, 269

      cost of, 238

      importance of cooperators to, 7–8

      and insider trading as victimless crime, 235

      irony of, 318

      leaks about, 254

      naming of, 3–4, 174

      and rivalries within FBI, 161

      sentences in, 286

      
See also specific person or case

Persico, Carmine “the Snake,” 16, 256

Pillsbury, 44–45

Pitt, Harvey, 33–35, 36, 39, 41, 260

Plotkin, Eugene, 112, 113

politics

      crackdown on insider trading and, 223–24

      elections of 2012 and, 298–99, 300–301

      FBI and, 205

      financial crisis of 2008 and, 205

      as influence on insider trading cases, 19

      and insider trading cases in 1980s, 41

      Kinnucan comment about, 230

      and “October Surprise,” 299

      SEC and, 88–90, 201, 205

Polycom, 122, 126, 137, 140, 176, 181, 214

Pomponio, Anthony, 58

Powell, Colin, 275

Pret a Manger (New York City), 170

Primary Global Research, 75, 207–8, 219, 220, 221, 232, 257, 269, 282, 307, 308, 324, 327

Prince, Chuck, 142

privacy

      wires (recording devices) and, 159

      wiretaps and, 65, 159, 163, 164, 165, 238–43

Proctor & Gamble, 196

Prohibition, 23

ProLogis, 102

prostitution, 23, 125

Pulliam, Susan, 285

“pump and dump,” 24, 222

Q Capital, 102

Qnexa: FDA decision about, 295–98

Quality Meats restaurant (New York City), 301

quantitative easing, 142

Queally, Kathleen, 134, 135

race/ethnicity: Wall Street and, 113–14

Racketeer Influenced and Corrupt Organizations Act (RICO), 51

railroad system: history of insider trading and, 22

Rajaratnam, Raj

      and accomplishments of law enforcement, 8, 16

      AMD trades and, 118, 122, 124, 125, 127, 188, 189–90, 221

      appeal of, 256

      arrest of, 210, 211, 213–16, 219, 220, 221, 251, 302

      ATI trades and, 182

      as celebrity, 17

      Chiesi and, 182, 185–87, 188, 189–91, 193, 194, 195, 205, 215–16, 238, 324, 327

      Choo-Beng Lee and, 205, 206, 207

      Cohen case compared with, 306

      Cohen views about, 267

      conviction/imprisonment of, 16, 255–57, 287, 318, 327

      cooperators and, 182, 236, 240, 248, 251–52

      cost of wiretaps on, 183

      debate about insider trading and, 16–17, 18

      depositions of, 121, 180, 287

      Drimal and, 218, 285

      early governmental concerns about, 116–19

      “edge” of, 180

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

      and ethnicity, 180–81

      expert networks and, 209

      Far and, 206, 207

      FBI/Chaves investigation of, 116, 118–19, 129, 130–31, 141, 144, 145, 146, 161, 175–76, 185, 199, 210, 213–15, 239, 254, 326

      financial crisis of 2008 and, 194

      as flight risk, 210–11

      founding of Galleon Group by, 114, 186, 325

      Goffer and, 172, 218

      Goldman Sachs-Buffet deal and, 198–99, 248, 283

      Google trades of, 235

      Gupta and, 8, 180, 182, 195, 196–97, 198–99, 210, 214–15, 248, 249, 269

      Hilton Hotel trades of, 127–28, 162, 235

      importance of case against, 131

      importance of turning, 214–15

      investor confidence and, 318

      investors' cost of activities of, 16–17

      Justice Department investigation and, 118–19, 127, 129, 132, 133, 210–11, 253, 304

      Kang investigation and arrest of, 14, 118, 129–30, 145, 167, 183, 199, 206, 209, 210, 211, 213–15, 239, 241, 242, 302, 326

      Khan flipping and, 137–41

      Khan relationship with, 127, 128–29, 130, 132, 138, 161, 162, 164, 175–76, 181, 186, 188, 251, 255

      Khan role in investigation of, 7, 14, 118, 123–26, 129–30, 132, 161, 163–64, 165, 168, 175–76, 177, 181, 182, 184, 251, 252, 292, 301, 326

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

      Longoria and, 219–21

      Makol and, 167, 199

      mosaic information and, 122, 123–24, 126, 182, 190, 238, 250, 255

      at Needham & Co., 205

      personal and professional background of, 114–15

      personality of, 116, 122, 123, 130, 180, 195, 255

      as primary target of law enforcement, 141

      psychic mole-on-the-face story and, 251

      public interest in activities of, 199, 200

      reputation of, 114

      Rosenbach and, 171–72, 218, 328

      as scape goat for Wall Street crimes, 256–57

      SEC deposition of, 121–26, 127, 130, 180

      SEC/Wadhwa investigation of, 110, 116–19, 121–26, 127, 129, 130, 131, 133, 144, 165, 180–82, 184, 199, 235, 239, 242, 249, 250, 254, 256, 262, 301–2, 328

      self-image of, 122

      Slaine and, 2, 148, 154, 167, 186, 285