Filed under: People , Investing With a mountain of evidence ranging from a cooperating witness to wiretapped confessions by an accomplice all but admitting guilt, prosecutors in the Galleon Group insider trading case might think they have an airtight case. But billionaire Galleon founder Raj Rajaratnam seems to be bracing for a fight. Last week Rajaratnam’s lawyers took to the offensive and succeeded in having cooperating witness Roomy Khan’s criminal background included in the hearings . Khan, a former employee of both Intel and Galleon, is a central witness against Rajaratnam. Khan has already pleaded guilty to trading on and passing on insider information as part of a plea agreement. Continue reading Galleon’s Raj Rajaratnam gears up for a legal showdown Galleon’s Raj Rajaratnam gears up for a legal showdown originally appeared on DailyFinance on Sun, 22 Nov 2009 19:30:00 EST. Please see our terms for use of feeds . Permalink | Email this | Comments

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Galleon’s Raj Rajaratnam gears up for a legal showdown

Filed under: People , Media Imagine being asked to solve a problem so difficult that the smartest people you know have been trying to figure it out for months, even years, without getting anywhere. Now imagine doing it with one metaphorical hand tied behind your back. That gives you an idea of the challenge Steven Waldman faces in his new job as the Federal Communications Commission’s designated deep thinker on the future of media . As a special adviser to Chairman Julius Genachowski, Waldman will be asked to assess the health of the news business and come up with recommendations for improving it — without exceeding the agency’s relatively narrow charter. Continue reading FCC’s Steve Waldman: Point man for fixing the news business FCC’s Steve Waldman: Point man for fixing the news business originally appeared on DailyFinance on Fri, 06 Nov 2009 13:00:00 EST. Please see our terms for use of feeds . Permalink | Email this | Comments

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Filed under: Economy , People , Investing , Media As the full extent of the Galleon Group’s insider trading comes to light, its story is starting to resemble something out of the movies. Although Raj Rajaratnam’s house has already been compared to the homes in both The Sopranos and Goodfellas , the sad truth is that the real-life criminal ring lacks both the class of Tony Soprano’s gang and the gravitas of Joe Pesci’s. As details emerge, the whole mess seems to fall closer to the cartoonish excess of Animal House . The central member of the gang — the Otter, if you will — may well be Zvi “The Octopussy” Goffer. Robert Khuzami, director of the Securites and Exchange Commission’s Division of Enforcement , noted Thursday that Goffer got his James Bond-originated nickname “because of his reputation for having arms in so many sources of inside information.” Goffer used his web of spies to cut trades both at Galleon and at his previous employer, the Schottenfeld Group. Continue reading The goofy Galleon gang: Wacky hedgies play cops and robbers…with real cash! The goofy Galleon gang: Wacky hedgies play cops and robbers…with real cash! originally appeared on DailyFinance on Fri, 06 Nov 2009 14:30:00 EST. Please see our terms for use of feeds . Permalink | Email this | Comments

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The goofy Galleon gang: Wacky hedgies play cops and robbers…with real cash!

Filed under: Company News , Investing I like what the Securities & Exchange Commission is doing this days. It cracked down on insider trading at Galleon Holdings , the former $3.7 billion hedge fund whose boss, Raj Rajaratnam, is out on $100 million bail. But the SEC hasn’t stopped there: Yesterday it announced an indictment against a former chief financial officer of ValueAct Capital. You may recall that several years ago, ValueAct Capital cleverly bought a huge chunk of Martha Stewart Omnimedia ( MSO ) after Stewart was indicted for insider trading in the stock of biotech company Imclone in June, 2003 . Stewart ultimately went to jail. ValueAct ended up owning 22 percent of MSO and sold most of its stake in 2005 after the stock rebounded, picking up a nice profit in the process. Continue reading The SEC moves against another alleged insider-trading ring The SEC moves against another alleged insider-trading ring originally appeared on DailyFinance on Sat, 31 Oct 2009 20:00:00 EST. Please see our terms for use of feeds . Permalink | Email this | Comments

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The SEC moves against another alleged insider-trading ring

Filed under: Company News , Economy , Investing We already knew that Raj Rajaratnam , the $1.5 billion net worth head of the now-liquidating Galleon Group who is free after posting $100 million bail, allegedly traded on inside information. But up until Saturday morning, I had thought Rajaratnam’s alleged insider information pertained only to company quarterly earnings reports. As the Galleon probe spreads to another hedge fund, it appears a new kind of insider information may have contributed to Galleon’s ill-gotten gains. Thanks to the Wall Street Journal , we now know that Rajaratnam used another, perhaps even more useful form of information — how many shares of a particular stock a major broker is buying or selling at any given time. For example, the Journal reports that Galleon executive Gary Rosenbach forced his Hambrecht & Quist (H&Q) broker to divulge how many shares of a certain stock big firms, like Fidelity Investments, were trying to sell. Continue reading Galleon used another form of insider information Galleon used another form of insider information originally appeared on DailyFinance on Sun, 25 Oct 2009 10:45:00 EST. Please see our terms for use of feeds . Permalink | Email this | Comments

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Galleon used another form of insider information