CDSs and, 202
Chiesi trades and, 188
collapse of, 183, 185, 188, 202–3, 265–66
financial crisis of 2008 and, 104–5, 142, 202–3
Franklin circle of friends and, 103, 104–5, 325
J.P. Morgan take over of, 185, 203
lack of prosecution of executives at, 204
New Castle Partners and, 185–86, 190, 324, 327
and racism on Wall Street, 113
risk-taking at, 105
SEC and, 204
See also Cayne, James “Jimmy”; Lyford Cay
Becker, Holly, 74
Berenson, Alex, 86
Berke, Barry, 313
Berkshire Hathaway, 126
Bernstein, Sanford, 204
Bharara, Preetinder “Preet”
ambitions of, 225, 260
at CCNY symposium, 258–59
and Chiasson and Newman convictions, 288
and cost of insider trading investigations, 258–59
criticisms of, 259
Dowd complaints about, 253–54
elections of 2012 and, 300
FBI relations with, 259–61
and future insider trading arrests, 319
Giuliani compared with, 225–26, 260
image of, 18
Kinnucan and, 233, 282, 284
leaks about Rajaratnam and, 254
as listening to wiretapped conversation, 259
media statement about insider trading of, 222–26, 227, 228
personal and professional background of, 224–25
Rajaratnam investigation/trial and, 237, 239, 243, 254, 259, 260, 323
reputation of, 224, 323
Steinberg arrest and, 313
Stillman research of, 309–10
supporters of, 260
Time story about, 259
Wadhwa meetings with, 261
Bharara, Vinnie, 224
Biovail Corp., 92, 107, 271, 280–81, 307–8, 323–24
BlackRock, 68
Blackstone Group, 127, 134, 140, 162, 176, 180, 235, 244, 316, 317, 327
Blankfein, Lloyd, 131, 198, 215, 299
Blodget, Henry, 77–79, 324, 326
Bloomberg News, 154
blue sheets, 55, 56
Boesky, Ivan
Cohen case compared with, 306
as cooperator, 41, 51, 103
fine for, 99
Giuliani and, 51, 225
as high-profile case, 40–41
and image of inside traders, 55
as inspiration for Funkhouser, 53
Justice Department and, 142
Lynch as lawyer for, 58
Milken case and, 41–42
misappropriation theory and, 47
Mulheren attempt to kill, 283
Pitt as attorney for, 33–34, 42
boiler rooms/bucket shops, 2, 24, 78, 184
Boston Stock Exchange, 27
Bowe, Michael, 92–93, 270–73, 307–8
Brasco, Donnie, 109
Broadband Research, 82, 222, 282, 326. See also Kinnucan, John
Brodsky, Reed, 131, 244–45, 246, 249, 251, 252, 258, 324
bucket shops. See boiler rooms/bucket shops
Buffett, Warren, 65, 87, 126, 198–99, 246, 248, 267, 283
Bulger, Whitey, 176
Burger Heaven (New York City), 170
Burger, Warren, 40
Burkle, Ron, 72, 73
Burrough, Bryan, 265–68, 275
Bush, George W., 18, 34, 89, 105, 183, 225, 237, 275
BusinessWeek: Wadhwa profile in, 262
Butenhoff, Kurt, 100, 101, 104, 178
Buttonwood Agreement (1792), 21
Cady, Roberts & Co., 32, 325
Callahan, Matthew, 308–9
Canellos, George, 317
Carl Karcher Enterprises, 54–55, 326
Cary, William L., 30–33, 34, 36, 324
Catellus Development, 102
Cayne, James “Jimmy,” 67, 91, 92, 100, 105, 265
Chaisson, Anthony, 274
Chanos, James, 271
Charles Schwab, 126
Chaves, David
Babcock-Franklin-Guttenberg circle and, 145, 146
Bharara comments about, 261
and Bharara media speech and, 227
Cohen/SAC Capital case and, 146, 179, 301
cooperators and, 147, 156–57
coordination of investigations and, 219
and debate about insider trading, 13
Douglas public announcement and, 260, 261
Drimal case and, 171, 173, 174
goal of, 146
Goffer case and, 174
hedge funds research of, 145–46
Kinnucan case and, 233–34, 285
Martha Stewart case and, 145
and naming of Perfect Hedge, 174
post-Rajaratnam investigation activities of, 258
Rajaratnam/Galleon Group case and, 146, 199
reputation of, 146
and rivalries within FBI, 145, 160–61
role in FBI investigations of, 324
Slaine and, 4, 5, 150–51, 152, 154–55, 159–60, 169, 172, 173, 174, 216, 233, 286
Steinberg arrest and, 313
style/methods of, 4
views about Wall Street/insider trading of, 14, 145, 146, 150, 318
Chellam, Kris, 175–76, 182
Chelsey Capital, 101, 103, 148, 150
cherry picking, 114, 116, 117, 124
Chiarella, Vincent, 37–39, 40
Chiasson, Anthony, 288, 313, 324
Chiesi, Danielle “Dani”
Akami information and, 185, 190–91
AMD and, 188–90, 328
appearance of, 186
Bear Stearns concerns about, 188–89
Choo-Beng Lee and, 205, 326
conviction of, 255
FBI arrest of, 215–16
Lee-Far connection and, 206
Moffat and, 187–88, 189, 206, 327
mosaic information and, 193
motivation of, 195
as New Castle analyst, 185–91, 324
personal and professional background of, 187
personality of, 187
Rajaratnam investigation and, 182, 185, 187, 253, 326
Rajaratnam payments for, 193
Rajaratnam relationship with, 185–87, 188, 189–91, 193, 194, 195, 238, 255, 324
and Rajaratnam wiretaps, 238, 242
Ruiz and, 188, 189, 328
suspicions about rats of, 207
Taylor and, 190
trial of, 242
wiretaps on, 185, 187, 188, 205, 215, 242, 253
Choo-Beng Lee, Richard, 205, 206–7, 208, 209–10, 219, 220, 221, 276, 326
Christie, Chris, 300–301
Cioffi, Ralph, 106
Cisco, 162–63
Citadel Management Group, 82, 84, 221, 229, 230–31, 288, 324
Citigroup/Citicorp, 27, 34, 43, 49, 79, 142, 201, 316, 319, 325
City College of New York symposium: Bharara at, 258–59
CJS Partners, 152
Cliff Mining, 27–28
Clinton, Bill, 40, 72, 201, 236
Clinton, Hillary, 40
CNBC, 198, 230, 276, 279
Cohen, Alexandra, 106, 107, 266–67, 315
Cohen, Patricia, 106–9, 178
Cohen, Steve “Stevie”
appearance and personality of, 86, 179, 271, 301, 311
belief system of, 270–71
Biovail case and, 307
Bowe and, 270–73
Burrough/Vanity Fair profile of, 265, 266, 267–68, 275, 277
as celebrity, 17
and change in regulations, 277
Choo-Beng Lee and, 205, 206, 207, 209–10
civil penalties paid by, 9
Cohen (Patricia) allegations about, 106–9
cooperators and, 87, 274, 275, 276, 302, 312
coordination of government information a
bout, 219
CR Intrinsic and, 243–44, 279, 296
defenders of, 69, 85–86, 246, 276–77, 278, 310, 311, 315, 316
depositions of, 108–9, 270–74, 310
Dietl dinner with, 311
emails of, 304, 305, 306, 317
expert networks and, 109
FBI/Chaves/Kang interest and investigation of, 4, 9, 69, 85, 91, 92, 93–94, 97, 106–9, 146, 177–78, 179, 207, 219, 231–32, 244, 271, 299–300, 301, 304–5, 307, 308, 313–15
financial crisis of 2008 and, 105, 180, 190
and founding of SAC, 67, 279, 322
Freeman and, 232, 289
front-running charges and, 74
Funkhouser and, 66, 68, 74, 94, 95, 178
and GE-RCA deal, 108
government strategy concerning, 298
at Gruntal, 50, 67–68, 106, 108
Hollander-Makol interview and, 243–46
image of, 179, 266
impact on SAC of indictment of, 319
insider trading views of, 270–73
Justice Department investigations of, 68, 85, 179, 268, 281, 304, 306
Kinnucan and, 288
lifestyle of, 91, 106–7, 179–80, 266, 316–17, 318
low profile of, 66
and Madoff comments about SAC Capital, 95
Martoma case and, 9–10, 280, 306–7, 308, 309–10, 311–12, 314–15, 317, 319
Moby-Dick analogy and, 302, 319
NYSE sanctions against, 108
organized crime compared with, 277
Pathmark trades of, 72, 73, 85
personal investment in SAC of, 315
personal life of, 106–9, 179–80
personal/professional background of, 50, 67–68, 86, 180–81
political activities of, 300–301
public interest in activities of, 200
public relations efforts of, 265, 266–67, 274, 300–301, 318–19
reputation of, 67, 68, 80, 83, 85–86, 94, 106, 271, 279, 324
risk-taking by, 105
role in SAC Capital of, 87–88, 243–44, 245, 271, 298
SAC culture and, 87, 232
and SAC sexual harassment case, 280
as scapegoat, 267
and SEC definition of insider trading, 264
SEC deposition of, 108–9, 310
SEC/Wadhwa interest in and investigations of, 69, 88, 97, 179, 219, 245–46, 262, 268, 270, 272–74, 277, 281, 301–2, 303–6, 307, 310, 312, 317
60 Minutes story about, 266, 271
and SkyBridge Capital conference, 274–75
Slaine and, 3, 151, 178
and small investors wariness, 318
and statute of limitations on insider trading, 281, 317
Steinberg and, 312, 314
as target of law enforcement/regulators, 8, 9, 10, 228–29, 324
trading patterns of, 66, 67, 68, 85, 91, 178
trading style of, 68
U.S. Attorney for the Southern District of New York and, 91, 94, 97, 243–46, 268, 302, 319
views about Rajaratnam of, 267
and Wall Street’s 1990 business model, 50
wealth of, 50, 68, 86, 91, 105, 281, 316–17
wiretaps on, 9, 109, 177–79, 206, 273–74, 299–300, 303
See also SAC Capital
Coleman, Eric, 297
collateralized debt obligations (CDOs), 201, 204
Collotta, Christopher, 101–2
Collotta, Randi, 101–2
Comey, James, 62, 257, 324
Common Stocks and Uncommon Profits (Fisher), 123
confidence, investor, 12–13, 14–15, 19, 147, 200, 235, 318
conflict of interest: financial crash of 2008 and, 27
conflict of interest: analysts/researchers and, 43, 76, 78, 79
Conheeney, Tom, 275, 324
cooperators
and comparison of organized crime with insider trading, 64
FBI deals with, 156–57
importance of, 64–65
organized crime and, 133
prison time for, 157
as repeat offenders, 134, 139
role in “Perfect Hedge” investigations of, 7–8
and self-image of inside traders, 133
wires (recording devices) on, 159
wiretaps and, 164, 182
See also specific person or case
Corzine, Jon, 263
Cosby, Bill, 63
Countrywide Financial, 263
Cowdin, J. Cheever, 32
Cox, Chris, 105, 183, 201, 203, 261, 263
Cox, James, 11, 12–13
CR Intrinsic (SAC unit), 243–44, 279, 296
credit default swaps (CDSs), 48, 142, 202, 263
Curtiss-Wright Corp., 32–33
Customs and Border Protection, U.S., 210
Cutillo, Arthur, 173–74, 218, 324
Daily Beast: Rajaratnam interview for, 251
Das, Manju, 195
Davis, Ellen, 259
Dean Witter, 42
Dell, 233, 276, 288, 312
democracy, 10–13, 201
Dennehy, Brian, 63
derivatives, 42, 83
Deutsch Bank, 200, 203, 258
Deutsch, Todd “Rain Man,” 167
DeVore, Daniel, 233
Diamondback Capital, 288, 312, 327
Dickey, Richard, 168
Dietl, Richard “Bo,” 180, 274, 275, 311
Dinallo, Eric, 79
Dirks, Raymond “Ray,” 33, 34–36, 39–40, 324
doctors: expert networks and, 51, 208, 307–8
Dorito bags: payoffs in, 101, 106, 145
Dorsey & Whitney, 43
Douglas, Michael, 260–61
Dow Jones & Co.: News Corporation purchase of, 95
Dowd, John, 236–37, 238–43, 250–51, 252, 253–55, 256, 324
Dreier, Marc, 235
Drexel Burnham Lambert, 40, 55, 108, 319, 326, 327, 328
Drimal, Arlene, 216, 293
Drimal, Craig
arrest/sentencing of, 217, 231, 286, 291, 324
and Bain Capital-3Com deal, 170–71
Chaves and, 171, 173, 174
FBI and, 166–68, 171, 216–17, 218
financial affairs of, 294
Goffer and, 173
Justice Department and, 217
Makol and, 165, 167–68, 170, 171, 173, 174, 216–17
personal life of, 167, 217, 294
personality of, 167
professional background of, 166
Rajaratnam/Galleon case and, 150, 157–58, 166, 167, 169, 218, 285
Slaine and, 150, 157–58, 160, 165, 166, 167–68, 169, 170, 171, 172, 173, 177, 216, 217–18, 285–86
wiretap on, 171, 217, 218
Duer, William, 21–22, 49, 324
“edge”
Bharara comment about, 223
history of trading and, 21
importance to hedge funds of, 3, 65, 80, 94–95
as inside information, 3
of Khan, 162
of Rajaratnam, 180
of SAC, 9, 10, 80, 206, 271–72, 281, 294, 297, 300–301, 318
of Slaine, 2
Efficient Markets Theory, 13–14
Elan, 280, 303, 305, 306, 307, 311
elections of 2012, 298–99, 300–301
emails
of Cohen, 304, 305, 306, 317
of Dowd, 253–54
flipping Khan and, 134, 138, 139–40
Freeman and, 232
Gilman-Martoma, 310
Khan deletion of, 162, 176
of Kinnucan, 229–30, 231, 233, 234, 282, 283, 284, 285, 287, 292, 293, 326
Rajaratnam and, 117, 123, 125, 126, 130, 256, 301
at SAC Capital, 279, 304, 305
Spitzer analyzer investigation and, 124
Enron, 34, 43, 271
Equal Employment Opportunity Commission (EEOC), U.S., 279–80
Equity Funding, 36, 39
Erbitux (drug). See Stewart, Martha
&nbs
p; ETFs (exchange-traded funds): debate about insider trading and, 14–15
ethnicity: and Rajaratnam case, 180–81
expert networks
analysts/researchers and, 269
Bharara speech and, 228
Cohen/SAC Capital and, 94, 109, 209, 232
compliance training of, 308
conviction and sentencing of, 288
corruption of, 307
decline of, 257, 269
definition of insider trading and, 264
doctors and, 51, 208, 307–8
FBI and, 229
fees for, 209
Freeman case and, 232
future of, 319
government investigations of, 220
hedge funds and, 75, 81, 207–9, 219, 220, 222, 227–28, 257, 269
importance of, 75
and individual’s relationship with employer, 219, 220
Kinnucan and, 222
law enforcement learns about extent of, 207–9
Moby-Dick analogy and, 319
mosaic information and, 83, 257
Rajaratnam/Galleon Group case and, 209
Wadhwa investigations of, 208–9, 262
See also specific organization
Fabrikant, Geraldine, 86
Facebook: IPO for, 16, 263, 318
Fairfax Financial, 93, 270, 271, 280–81, 325
fairness, 11–13, 14, 15–16, 30, 39
Faneuil, Doug, 59, 62, 64, 325
Far, Ali, 205–6, 207
FBI (Federal Bureau of Investigation)
arrest procedure of, 213
and Bharara media statement about insider trading, 227
Bharara relations with, 259–61
Chaves reputation within, 146
cooperators deals with, 157
and cost of insider trading investigations, 258
and debate about insider trading, 13
definition of insider trading and, 273
and difficulty of proving and prosecuting insider trading cases, 64
Douglas public service announcement about insider trading and, 260–61
Dowd complaints about, 254
expert networks and, 207, 229
financial crisis of 2008 and, 143, 183, 226
Franklin’s circle of friends and, 103
funding/manpower at, 144, 183
insider trading as focus of, 143
Justice Department relationship to, 227
largest number of insider trading arrests in history of, 216
leaks and, 254
Makol reputation within, 153
media and, 254
“October Surprise” and, 299
politics and, 205
public image of, 144, 228
public relations and, 227–28, 260–61
publicity about insider trading and, 234
and Rajaratnam-Gupta relationship, 196–97
rivalries within, 144–45, 160–61
SEC relations with, 161
SEC/Wadhwa investigation of Rajaratnam and, 118–19, 128–29, 141, 161, 262
and sharing of information among law enforcement agencies, 96–97
Streeter and, 235