Monday, 20 October 2014
Last updated 6 hours ago
Jan 27 2011 | 1:23pm ET
Two former Galleon Group traders pleaded guilty to insider-trading charges yesterday with one saying he passed confidential tips on to Galleon founder Raj Rajaratnam.
Adam Smith and Michael Cardillo pleaded guilty to securities fraud and conspiracy in Manhattan federal court yesterday. Both men are cooperating with prosecutors and have agreed to testify in any Galleon case trials, including that of Rajaratnam, set to begin on Feb. 28.
Smith, for one, did not wait until then to implicate his former boss, telling the judge at his plea hearing, "I spoke with Raj Rajaratnam over the telephone in New York and communicated non-public information."
At his own hearing later yesterday, Cardillo said, "I knew at the time I did this that it was illegal and wrong, and I'm very sorry for having acted as I did."
Prosecutors say Smith was an intermediary for some of Rajaratnam's allegedly non-public information about Advanced Micro Devices' 2006 deal to acquire ATI Technology. Cardillo, who reportedly burst into tears at the office on the morning Rajaratnam was arrested, used confidential tips to trade six stocks, along with, it is alleged, Rajaratnam.
As part of Smith's plea deal, the former portfolio manager will not be charged with destroying records after Rajaratnam's arrest, or with alleged insider-trading he did last year.
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitish of Peddie School's endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
Sep 30 2014 | 9:29am ET
The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…
Most traders agree that proper risk management is the key to successful trading. However, many traders depend on the deeply flawed measure of standard deviation as a benchmark of risk. Here we put it ...