Thank you for the tips and rec's. If we don't run with some good news, who will?
SUGGESTED ACTION ITEM: Call your local FBI office just to say THANK YOU! for going after the Insider Traders. Here's the link to the FBI Office by State.
That dripping noise you might be hearing is the sound of water running off the backs of BIG Insider Trading Fish. Really, really BIG FISH that thought everything was coming up roses during the "Do Nothing, Rubber Stamp Congress", BushCo Hay Day Financial Free-For-All. That dripping noise could also be coming from all the leaking going on.
You know how it works. A Big Fish gets caught red handed (all that wire tapping is paying off); however, if The Indicted One strikes a deal and shares what he knows without lying, they might go a bit lighter on him, right?
That is what it looks like is happening. That, and a lot of phones are being tapped. The next noise we might hear could be the slow, long clacking sound of dominoes.
I am working on an analysis of FBI Financial Fraud Convictions over time, but it will be a week or so before I can finish that. From what I have seen so far, the FBI and DOJ deserve a LOT more credit then they are being given. I hope to demonstrate their success with a series of charts.
That said, why wait for some good news.
David Loeb, Top Goldman Exec, Under FBI Investigation: Report
Loeb is one of Goldman Sachs' top middlemen between the bank and technology hedge funds.
In addition to Loeb, the FBI is also investigating Henry King, a technology analyst at Goldman Sachs, for allegedly offering insider tips to hedge fund clients, according to the WSJ.
The probe into Loeb and King comes as the FBI ramps up its crackdown on insider trading. The agency is trying to build insider-trading cases against about 120 people.
You may have heard last October that
Rajat Gupta surrenders to FBI in insider trading case. Mr. Gupta is a Davos Attendee type of big fish in the financial inner circles.
Securities and Exchange Commission in March accused Gupta of giving inside information about Goldman Sachs to his friend and business partner Raj Rajaratnam.
Hedge Fund Billionaire Raj Rajaratnam Found Guilty in Manhattan Federal Court of Insider Trading Charges
Raj received the longest prison term in history for insider trading. Sentenced in Manhattan Federal Court to 11 Years in Prison for Insider Trading Crimes
The FBI and the Courts are getting very serious about prosecuting Insider Trading.
Perhaps this is the Insiders' Golden Ticket to pay restitution and do time for ripping off the WHOLE WORLD!
Perhaps compare these Insider Trading cases to how the IRS took down Chicago's "Scarface" Al Capone.
Maybe Insider Trading will bring the architects of the Housing Debacle to justice. From the FBI Article
“Two years ago, Raj Rajaratnam stood at the summit of Wall Street, commanding his own financial empire. Then he was arrested, tried, and convicted by a jury. Mr. Rajaratnam stood convicted 14 times over of felonies, his empire exposed as a web of fraud and corruption that entangled many.
Today, Mr. Rajaratnam stood once more and faced justice which was meted out to him. It is a sad conclusion to what once seemed to be a glittering story. We can only hope that this case will be the wake-up call we said it should be when Mr. Rajaratnam was arrested. Privileged professionals do not get a free pass to pursue profit through corrupt means.
The message is the same for everyone no matter who you are or how much money you have—obey the law or face the fate of those who don’t.”
For a
peek into the world of Raj and names of others he Insider Traded with check out
the Daily Mail blockbuster (and possible 2011 winner for longest headline):
Buried by the blonde: Wall Street giant who made $60million from illegal tips guilty in biggest ever hedge fund insider trading case after beauty queen's revealing tapes
Unbelievably posh lifestyle.
THE FBI HIRED MICHAEL DOUGLAS for its promo for their "Perfect Hedge" insider trading crackdown. "If you see something suspicious, let the FBI know"
UPDATE: There are claims in the comments below that the DOJ isn't convicting Insider Traders. This is not true. To read the convictions, click on the following links:
List of "insider trading" convictions
Results 1 - 10 of approximately 37 for '"insider trading" conviction 2009 2010 2011'
Results 1 - 10 of approximately 58 for '"insider trading" 2011 conviction'
Results 1 - 10 of approximately 38 for '"insider trading" conviction 2012'
From the FBI website
"insider trading" 2009 2010 2011 2012
Back to Raj's friend amd former Galleon Chairman Elect, Rajat Gupta.
Few people in the USA Financial Industrial Complex are more esteemed Rajat Gupta.
Rajat has lots of the wealthiest friends in the world and many in very high places.
Here's Rajat's list of professional affiliations (however, many are now listed as Former since his FBI Insider Trading issue emerged last October):
Chairman of New Silk Route partners (on leave)
Former chairman of the Board of the Indian School of Business
Chairman of the Board of Associates of the Harvard Business School
Co-Chair of the American India Foundation (AIF)
Co-Chair of the United Nations Association of America
Former Chair of the IIT Alumni Association[83]
Former chairman of the Advisory Board of The Gates Foundation*
Former chairman of the India AIDS Initiative of The Gates Foundation
Former chairman of the Global Fund for AIDS, Malaria, and Tuberculosis
Former chairman of the International Chamber of Commerce
Former chairman-elect, Galleon Group International
Former chairman of the Board, Genpact Limited
Former member of the Board, AMR Corporation and American Airlines Inc. subsidiary
Member of the Board, Sberbank
Former member of the Board, Harman International.
Former member of the Board, Goldman Sachs
Former member of the Board, Procter and Gamble
Former senior advisor, Kohlberg Kravis Roberts
Senior advisor, TeleSoft VC partners
Advisor, Novitaz, Inc.
Advisor, OmniCapital Group LLC
Chairman of the advisory board, Clutch Group LLC
Advisory board, Fjord Capital Partners Ltd
Advisory board, Symphony Technology Group
Former member, Board of Trustees, University of Chicago
Member, Yale President’s Council
Advisory Board, Kellogg School of Management
Dean’s Advisory Council, Massachusetts Institute of Technology Sloan School of Management
Dean’s Advisory Board, School of Economics and Management, Tsinghua University
Board of Governors of the Lauder Institute of Management & International Studies, The Wharton School, University of Pennsylvania
Board of Overseers of the Weill Cornell Medical College
Board of the Global Health Council
Dean’s Council, Harvard School of Public Health
United Nations Commission on the Private Sector and Development
Member of the Board, Qatar Financial Centre
Member, American Academy of Arts and Sciences
Former trustee, Rockefeller Foundation
Board of Pratham India Education Initiative
Foundation Board Member of the World Economic Forum
Board of the Millennium Promise
Board of the International Partnership for Microbicides (IPM)
Chairman of the Public Health Foundation of India (PHFI)
Director, Emergency Management and Research Institute
*
Rajat Gupta quits Gates Foundation panel
It is fascinating to read the following lengthy "Gee, it will be really hard to prove Mr. Gupta is guilty" NYTimes article below, especially in light of how the New York Time treated the Martha Stewart case, which ended with this paragraph after outling how Martha's professional life would be ruined after becoming a felon:
``The government is always harsh and retributive when they feel they have been lied to,'' Mr. Coffee said. ``As to prosecuting an anonymous vice president or the most famous businesswoman in America, this indictment tells everyone in the nation that securities fraud is viewed as a very serious offense.''
So, if Mr. Gupta tells the truth, the whole truth, and nothing but the truth...? He pleaded not guilty last fall and has been indicted. He looks really, really angry in the picture of him leaving court. You can also see the Indictment in this article.
I highly recommend reading this informative NYTimes article, especially if you are interested in how Insider Trading is prosecuted.
The Challenges of Prosecuting Rajat Gupta
Here's how this Mr. Gupta's NYT article ends:
I expect Mr. Gupta will be able to call witnesses who will attest to his good character and reputation for honesty. This type of evidence can support a defense that he was an unsuspecting dupe and not a conspirator leaking inside information, especially when it is not apparent how he benefited from the Galleon trading.
Mr. Gupta’s lawyer said that his client was an “innocent man and that he acted with honesty and integrity.”
So far, the Justice Department has been successful in all of its recent insider trading trials in proving defendants traded on material nonpublic information. The prosecution of Mr. Gupta, with its challenges, will determine whether the government can keep that winning streak intact.
That's right. Once a "New Sheriff" arrived in town, the cases are mounting up. And who said the FBI and DOJ wouldn't go afte the BIG FISH.
Peter J Henning, NYTimes "Deal B%K" columnist is an interesting resource to follow, although I prefer using the searchable websites for the FBI and DOJ.
Greater Penalties for Insider Trading Looks like Dodd-Frank Act includes some MANDATORY SENTENCING. OMGosh, chuckling....the convicted Insider Traders may end up INSIDE the private prisons they probably traded. Get it? TOO RICH.
Sentences for insider trading have been on the rise since the Justice Department began its latest crackdown in 2009 that started with the arrest of Raj Rajaratnam. The past year had the highest sentences ever given for this type of crime, including the 11-year prison term for Mr. Rajaratnam.
Under proposed amendments to the Federal Sentencing Guidelines announced last week, recommended punishments for insider trading are likely to increase in response to Congressional pressure to ratchet up sentences for securities fraud.
That will put even more pressure on defendants to cooperate with the government in the hope of receiving a reduced penalty.
Here's what is true. There have been hundreds of financial fraud cases resulting in convictions. WE JUST NEVER HEAR OF THEM ON TV. We are fed Lindsey Lohan, car accidents, murders, house fires, disasters, weather, and scandals.
So, when you have some time to browse, pop some corn and jump into the FBI and DOJ websites. Use the search feature to learn of the cases in an area you are interested in.
THIS IS GOOD NEWS! THESE ARE ACCOMPLISHMENTS THAT HAVE IMPROVED SINCE
THE OBAMA ADMINISTRATION TOOK OVER. And all along I thought they hated him for a myriad of reasons. I didn't suspect it was because many of their friends and Tippers are going to jail.
You will see what I mean when I finish the charts covering the years 2000 - 2010 in an upcoming article.
Be happy, stay yappy, occupy, and keep it honest.
THE OBAMA ADMINISTRATION ISN'T GETTING CREDIT WHERE CREDIT IS DUE:
I am doing a series of diaries to share A LITTLE GOOD NEWS to uplift us and fuel us to keep occupying.
Cheney's KBR CEO GUILTY of Nigerian Bribery: 30 Months Sentence! See timeline, Cheney's in deep
MORTGAGE FRAUD: The Short Sale, Indictments, and Convictions. Hats Off to FBI/DOJ
Six Former NYPD Officers Guilty in Gun-Smuggling Case & 50+ Caught in Bribery Sting
OTHER KOSSACKS HELPING TO SHARE THE GOOD NEWS
Back in December, 2010 Lawrence wrote a story about how Holder's DOJ was going after White Collar Crime. Having read through the comments, it is amazing how many discouraged comments were made. See for yourselves:
Holder DOJ Cracks Down on Financial Fraud
on!
WASHINGTON (AP) — A nationwide law enforcement crackdown targeting financial fraud has led to cases against 343 criminal defendants involving $8.3 billion in estimated losses, Attorney General Eric Holder announced Monday.
"Operation Broken Trust" is the first national effort of its kind aimed at a broad array of investment fraud schemes and the 3 1/2-month campaign was organized by the Obama administration's Financial Fraud Enforcement Task
Force.
Thanks, Lawrence for bringing your diary to my attention. I hope you will help expose the successes of Team Obama by writing diaries about them, too. We won't let the dissers discourage us.
And from Cotterperson in June, 2010:
BREAKING! 485 arrested for mortgage fraud. UPDATE X2
This diary made the Rec list. There's lots of great information as well as another indicator of how we feel about this topic in the comments.
Another diary fromVyan:
Prosecuting Wall Street Gets Real
During the latest State of the Union one moment literally made nearly jump up and cheer. The point where Obama said that he would be putting together a task force to look into Wall Street abuses
.
WE CAN UNDO the Urban Legend that this Administration is soft on White collar crime. They are not.
_________
This is page one of many, many pages of Insider Trading cases listed at the DOJ website.
I searched for "Insider Trading" 2009 2010 2011
StopFraud.gov - News
... 2009: Nov | Dec. ... Investment Adviser Pleads Guilty in Manhattan Federal Court
to Insider Trading and Forfeits More ... January 7, 2011 | External Link. ...
www.stopfraud.gov/news.html-149k- Cached
StopFraud.gov - News
... 2009: Nov | Dec. ... July 29, 2011 | External Link. ... Portfolio Manager Sentenced
in Manhattan Federal Court to 30 Months in Prison for Insider Trading. ...
www.stopfraud.gov/news-2011.html-122k- Cached
[More results from www.stopfraud.gov]
[PDF] Press Release - 12-08-10 - Participants in Insider Trading ...
... appear for sentencing on February 18, 2011. ... a coded reference to the insider
trading activity depicted in ... months later, in January 2009, became the ...
www.justice.gov/usao/cas/press/cas10-1208-Myers.pdf-2011-01-04- Text Version
[PDF] Press Release - 2-15-11 - Former Sequenom Patent Agent ...
... the close of trading on April 30, 2009, Sequenom's stock ... $612,000 in gross
proceeds from the insider trading. ... in court on May 13, 2011, before US ...
www.justice.gov/usao/cas/press/cas11-0215-Scalia%20and%20Scalia.pdf-2011-02-24- Text Version
[More results from www.justice.gov/usao/cas/press]
USDOJ: US Attorney's Office - District of New Jersey
... They often got a new phone for each of their insider trading deals. ... 5, 2009.
Nov. 11, 2009. 3Com Corp. $199,200. ... 24-Feb. 17, 2011. Feb. 20, 2011. ...
www.justice.gov/usao/nj/Press/files/Bauer,%20Garrett%20et%20al%20News%20Release.html-32k- Cached
[PDF] 1i:/;-h'!It--
... ELEVEN INSIDER TRADING TRANSACTIONS ... CC-1 07/28/2010- 08/17/2010
08/19/2009 $494,182 ... BAUER 01/24/2011- 02/17/2011 02/21/2011 ...
www.justice.gov/usao/nj/Press/files/pdffiles/2011/Bauer,%20Garrett%20and%20Kluger,%20Matthew%20Complaint.pdf-2012-01-24- Text Version
[More results from www.justice.gov/usao/nj/Press]
StopFraud.gov - Financial Fraud Enforcement Task Force
... They often got a new phone for each of their insider trading deals. ... 8-Nov. 5,
2009, Nov. 11, 2009, 3Com Corp. $199,200. ... Jan. 24-Feb. 17, 2011, Feb. ...
www.stopfraud.gov/news/news-04062011.html-23k- Cached
StopFraud.gov - Financial Fraud Enforcement Task Force
... appear for sentencing on February 18, 2011. ... a coded reference to the insider
trading activity depicted in ... months later, in January 2009, became the ...
www.stopfraud.gov/news/news-12082010-3.html-13k- Cached
[More results from www.stopfraud.gov/news]
USDOJ: US Attorney's Office - Eastern District of Virginia
... the Justice Department is determined to take on insider trading at every ...
According to court documents, in July 2009, Johnson used inside ... 12, 2011. ...
www.justice.gov/usao/vae/news/2011/05/20110526johnsonnr.html-19k- Cached
USDOJ: US Attorney's Office - Eastern District of Texas
... FOR IMMEDIATE RELEASE. January 13, 2011. ... man has pleaded guilty to
insider trading in the ... 4, 2009, when he learned that representatives of Dell ...
www.justice.gov/usao/txe/News/2011/EDTX_SALEH_011311.html-20k- Cached