| Author | Message | ||
     Ashton Hero Username: Ashton Post Number: 14320 Registered: 05-2008 Posted From: 205.234.140.219 Rating: N/A |
http://dealbook.nytimes.com/2012/01/18/f-b-i-makes-insider-t rading-arrests/ Sandeep Goyal was a small-time stock analyst with a big connection. Before pursuing a career on Wall Street, Mr. Goyal spent three years at Dell, and after he left in 2006, he kept close ties to his colleagues at the computer maker. In 2008, while working at a mutual fund company, Mr. Goyal received illegal tips from a Dell executive about the company’s financial results, federal authorities say. Mr. Goyal, they say, used the secret information as currency, passing it around to his expanding network of fellow stock pickers. The leaks, emanating from Dell’s headquarters in Texas, ricocheted around the country, reaching a fund manager at a small trust company in California and three powerful hedge funds in New York and Connecticut. On Wednesday, federal prosecutors announced criminal charges against Mr. Goyal and six others, depicting a “circle of friends” that together earned about $62 million in illegal gains in Dell stock. One hedge fund, Level Global Investors, made $53 million of those profits, the government said. Level Global is the most prominent hedge fund touched by the government’s insider trading prosecutions since the Galleon Group closed in 2009 after the arrest of its co-founder, Raj Rajaratnam. A co-founder of Level Global, Anthony Chiasson, 38, was among those charged on Wednesday. Also charged were Todd Newman, 47, a former trader at Diamondback; Daniel Kuo, 36, a former portfolio manager at Whittier Trust Company in Pasadena, Calif., and Jon Horvath, 42, an analyst at Sigma Capital, a unit of SAC Capital Advisors, the hedge fund run by the billionaire investor Steven A. Cohen. |
