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
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, 1
23, 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
<
br /> 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
small/average investors interest in, 263
Streeter and, 328
Tamil Tigers and, 116, 129
trading patterns of, 66, 116–19
trial of, 235–43, 247–56, 257, 324, 326
U.S. Attorney for the Southern District of New York and trial of, 235–43, 254
wealth of, 16, 115, 134, 210, 237, 251, 253
wiretaps on, 130–32, 141, 153–54, 161, 163–65, 176, 177, 182, 183, 184, 185, 199, 206, 210, 236–37, 238–43, 247, 248, 251, 252, 253, 255, 256, 257, 301, 327
Xilinx and, 175–76
See also Galleon Group
Rajaratnam, Rengan, 114, 116, 117, 118, 123, 124, 127–28, 130, 161, 251, 301, 302, 328
Rajaratnam, Vandani, 251
Rakoff, Jed S., 287
Raphael, Justin, 241–42, 243
RCA: GE acquisition of, 108
Circle of Friends Page 39