Tuesday, 21 October 2014
Last updated 11 hours ago
Apr 4 2011 | 12:35pm ET
The Securities and Exchange Commission has asked a federal judge to toss accused Raj Rajaratnam tipster Rajat Gupta's lawsuit against it, saying there is nothing he can do to stop the administrative action against him.
The SEC said in court papers filed on Friday that U.S. District Judge Jed Rakoff doesn't have jurisdiction over the case. Gupta, the only one of the 24 people the SEC has sued in the Galleon Group insider-trading case to face an administrative hearing rather than a jury-trial lawsuit, has asked Rakoff to block the administrative proceedings, scheduled to begin on July 18.
Administrative hearings are widely seen as more favorable to the SEC than full trials before a U.S. District Court judge, such as Rakoff.
But "even if he gets the ruling he is asking for, it doesn't stop the rest of the proceedings," SEC lawyer Richard Humes said. Humes and fellow SEC attorney Christopher Bruckmann said that federal law provides Gupta the opportunity to appeal SEC administrative decisions to a federal appeals court and not to a district court.
"Gupta is essentially seeking to convert potential factual, legal and constitutional defenses to an administrative proceeding to a claim that he is entitled to immediate" review in federal court.
Rakoff has appeared skeptical of the SEC's actions, calling the singling out of Gupta "bizarre" in one hearing. In another, he said, "23 of them are charged in federal court where they have the right to a jury trial, and one of them is not and is charged only in an administrative proceeding. Does that implicate the equal protection clause of the Constitution as well as a jury trial clause of the Constitution?"
Gupta, who is expected to testify for the defense in Rajaratnam's trial, has denied any wrongdoing.
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 ...