Thursday, 28 August 2014
Last updated 1 hour ago
Feb 3 2010 | 2:11pm ET
A former hedge fund manager and admitted insider-trader wore a wire as part of the Galleon Group probe, linking the two largest insider-trading cases in U.S. history.
David Slaine, a former trader for Galleon, pleaded guilty in December to conspiracy and securities fraud charges stemming from a 2007 that ensnared 13 people. That was the largest insider-trading case ever until last year, when Galleon founder Raj Rajaratnam and 20 others were charged—with an assist from Slaine.
Slaine, who has been cooperating with the authorities for more than a year, wore a wire that produced some of the huge number of tapes and wiretaps that are at the heart of the Galleon case. He has also accused Craig Drimal, a former Galleon employee who pleaded not guilty to fraud charges this week, of trading on non-public information.
Slaine pleaded guilty in December to trading on insider tips about stock ratings changes by UBS Securities while at Chelsey Capital in 2002, earning the hedge fund more than $3 million. He also netted some $500,000 trading in his own account. The U.S. Securities and Exchange Commission filed a civil suit against Slaine yesterday.
Slaine’s link to the Chelsey insider-trading case was not known until his guilty plea was unsealed yesterday. He was identified as a cooperating witness in the Galleon case by defendant Zvi Goffer’s lawyer on Jan. 29.
“Slaine knew, or should have known, that this information was being tipped in breach of duty to UBS,” the SEC said.
Chelsey is also where Mark Lenowitz and Eric Franklin, who have also been charged in the 2007 case, worked. In addition to his stints at Galleon and Chelsey, Slaine once worked at Morgan Stanley and CJS Capital, a hedge fund he managed with two former SAC Capital Advisors employees.
Slaine faces up to 25 years in prison at his sentencing on June 25.
Aug 25 2014 | 11:21am ET
As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…
Commodities/Futures magazine launched at the precipice of a revolution in the futures industry—really a revolution in the idea of risk management—that would move it from a small niche industry to ...