EIC/Wall Street investigations
Matthew's Feed
Feb 23, 2011

Is Stevie Cohen the Feds’ Moby Dick?

NEW YORK/BOSTON, Feb 23 (Reuters) – Soon after U.S.
prosecutors charged two of his former employees with
trafficking in confidential corporate information earlier this
month, Steven A. Cohen kicked his hedge fund’s damage control
operation into high gear.

In the morning, top managers at SAC Capital Advisors, LP’s
headquarters in Stamford, Conn., calmly fanned out to allay any
concerns the 250 analysts and traders at the $13 billion fund
firm might have about the insider trading charges against the
two former employees, Donald Longueuil and Noah Freeman. A
separate outreach program went on with SAC Capital’s wealthy
investors, some of whom had anxiously called up within minutes
of the news hitting the wires.

Feb 10, 2011

Indicted hedge fund trader linked to Cohen, Druker

BOSTON/NEW YORK (Reuters) – Steven Cohen and Neil Druker are at opposite ends of the spectrum when it comes to hedge fund fame and trading prowess.

But both wealthy hedge fund managers now find themselves linked to a U.S. insider trading investigation because of the criminal conduct of the same former employee.

Feb 9, 2011

Ex-SAC Capital employees charged in trading probe

NEW YORK, Feb 8 (Reuters) – Two people who once worked for
billionaire trader Steven A. Cohen’s SAC Capital Advisers were
charged with insider trading, drawing the $12 billion hedge
fund firm further into a high-profile U.S. investigation.

Prosecutors on Tuesday accused the two former employees,
among four new defendants charged with insider trading, with
receiving corporate secrets while working at SAC. The firm
itself has not been charged with any wrongdoing.

Feb 8, 2011

Hedge fund managers face US insider trading charges

NEW YORK, Feb 8 (Reuters) – Three hedge fund managers,
including the head of an $80 million fund raided by federal
agents in November, and an analyst will be charged with insider
trading, U.S. prosecutors and people familiar with the matter
said on Tuesday.

The charges mark the latest development in a broad probe of
hedge funds’ trading activities. Authorities had previously
brought criminal charges against eight people tied to a
so-called expert networking firm who are accused of improperly
leaking confidential corporate information to hedge funds.
Tuesday’s charges are the first against hedge fund managers in
the probe.

Feb 4, 2011

Jamie Dimon wants some R-E-S-P-E-C-T

NEW YORK (Reuters) – What’s eating Jamie Dimon?

At last week’s World Economic Forum in Davos, Switzerland, the JPMorgan Chase chief executive once again lambasted the media and politicians for portraying all bankers as greedy evil-doers.

It was at least the 12th time since the start of the financial crisis that Dimon has complained about Wall Street critics painting all bankers as cut from the same cloth. But the timing of his latest outburst seemed odd.

Feb 4, 2011

Special report: Jamie Dimon wants some R-E-S-P-E-C-T

NEW YORK (Reuters) – What’s eating Jamie Dimon?

At last week’s World Economic Forum in Davos, Switzerland, the JPMorgan Chase chief executive once again lambasted the media and politicians for portraying all bankers as greedy evil-doers.

It was at least the 12th time since the start of the financial crisis that Dimon has complained about Wall Street critics painting all bankers as cut from the same cloth. But the timing of his latest outburst seemed odd.

Feb 4, 2011

Bill Clinton sees Dimon getting banks back to basics

NEW YORK (Reuters) – Bill Clinton says the “jury may still be out” on whether behemoth banks like JPMorgan Chase are good for America.

But the former president said he remains a fan of Jamie Dimon, largely because the JPMorgan chief executive is one of the few top bankers willing to speak his mind and admit mistakes.

Feb 2, 2011

Expert network firm Gerson Lehrman hires lobbyist

NEW YORK, Feb 2 (Reuters) – Expert network firm Gerson
Lehrman Group has hired a Washington lobby firm with close ties
to the Democratic party as it braces for fallout from a U.S.
insider trading investigation, according to two people familiar
with the matter.

Gerson Lehrman, the largest of a group of firms that
specialize in matching hedge funds with industry consultants,
began interviewing lobbying firms a few weeks ago and selected
Elmendorf Ryan in the past few days, said these people, who
asked not to be named because they were not authorized to
disclose the information to the media.

Jan 31, 2011

US insider trading probe takes toll on small funds

NEW YORK, Jan 31 (Reuters) – Technology-focused hedge fund
STG Capital, which did business with an expert network firm
that has figured prominently in an ongoing U.S. insider trading
investigation, is shutting down, said people familiar with the
situation.

Steven T. Glass, the founder of STG, which once had more
than $200 million under management, notified investors last
week he was shutting down his fund, said one investor familiar
with the situation, who declined to be identified.

Jan 28, 2011

NIR Group seeks to calm nerves as probe widens

NEW YORK (Reuters) – Hedge fund manager Corey Ribotsky recently sent a letter to his investors in his NIR Group telling them he has been the subject of “rumor and innuendo” and that his firm did nothing wrong.

Ribotsky wrote to his clients — a relatively rare occurrence — nearly a year after the initial disclosure that his $750 million hedge fund was being investigated by federal prosecutors for allegedly inflating returns.