Blackstone Exec. Charged With Insider Trading

Jan 14 2009 | 1:01pm ET

Ramesh Chakrapani, a Blackstone Group managing director involved in the firm’s mergers and acquisitions advisory unit, has been sued by the U.S. Securities and Exchange Commission for insider trading.

According to the complaint, Chakrapani was tipped off by a friend about the acquisition of supermarket chain Albertsons in 2006 by private equity firm Cerberus Capital Management before the deal was publicly announced.  The SEC says Chakrapani earned $3.6 million in illegal profits trading on the insider information.

“We are shocked by this alleged breach of the law and violation of our own compliance policies and ethical standards,” said Peter Rose, spokesman for Blackstone.

The original acquisition, valued at $17.4 billion, included splitting up the Albertsons stores between a consortium of buyers, including Supervalu, drugstore chain CVS and New York-based Cerberus. At that time, Albertsons was the nation’s second-largest supermarket chain. The SEC says that Chakrapani’s Blackstone team advised Albertson’s on the deal.


In Depth

Malik: The Science of Deal Sourcing 201

Aug 27 2015 | 5:35pm ET

Deal sourcing is understandably a hot topic among private equity firms because it...

Lifestyle

Rolling Art Advisors Marketing Collectible Car Fund As Uncorrelated Alternative

Aug 27 2015 | 6:47pm ET

A new fund is trying to provide investors with greater access to an emerging asset...

Guest Contributor

Agecroft Partners: Hedge Fund Industry Assets to increase $250B by Summer 2016

Aug 11 2015 | 11:29am ET

Assets will continue to flow into the hedge fund industry despite long-standing...

 

Editor's Note