Insider Trading Accusations Describe Network Of Corruption

WillyT

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Wed Feb-09-11 07:11 PM
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Insider Trading Accusations Describe Network Of Corruption

Insider Trading Accusations Describe Network Of Corruption
William Alden
First Posted: 02/ 8/11 05:35 PM Updated: 02/ 9/11 10:08 AM

<snip>

In the latest charges to be brought against Wall Street financiers, Federal authorities depict insider trading in dramatic detail.

Two hedge fund managers -- Samir Barai and Donald Longueuil -- were arrested Tuesday morning on charges of insider trading, Bloomberg reports. Two others -- portfolio manager Noah Freeman and analyst Jason Pflaum -- pleaded guilty. The charges are the latest example of a Federal crackdown on insider trading that the Wall Street Journal detailed in November.

In a pair of documents, the Securities and Exchange Commission and the Federal Bureau of Investigation describe an illegal exchange of information, which allegedly allowed hedge funds to reap $30 million in profits. According to the Federal complaints, employees at publicly traded technology companies sold secret information about those companies to workers at hedge funds, which then used that information to make big trades in the companies' stock.

And...

During a conversation between Freeman and Longueuil, which they recorded, they describe how to destroy electronic evidence, the FBI says. From the document:

Freeman then remarked, "I don't see how you get rid of this sh*t," to which LONGUEUIL explained, "Oh, it's easy. You take two pairs of pliers, and then you rip it open ... and then, it's just a piece of NAND. ... So I just f*cking ripped it apart right there. ... I had two external drives that had like wafer numbers on 'em. F*ckin' pulled the external drives apart. Destroyed the platter. ... Put 'em into four separate little baggies, and then at 2a.m. ... 2a.m. on a Friday night, I put this stuff inside my black North Face jacket, ... and leave the apartment and I go on like a twenty block walk around the city ... and try to find a, a garbage truck ... and threw the sh*t in the back of like random garbage trucks, different garbage trucks."

<snip>

More: http://www.huffingtonpost.com/2011/02/08/insider-trading-hedge-fund_n_820446.html

:wow:

:kick:

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AlabamaLibrul

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Wed Feb-09-11 07:17 PM
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1. In March 2009, Shimoon advised Nguyen that Apple was developing a new type of iPhone and provided

provided specific quarterly order information that Flextronics was receiving from Apple for the new product. Nguyen understood that this information was nonpublic at the time, and this type of information was also governed by non�disclosure agreements between Flextronics and Apple.

Wow.

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rhett o rick

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Wed Feb-09-11 07:24 PM
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2. But will the money be recovered? nm

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