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More arrests in Galleon insider-trading case: sources



05 November 2009 @ 11:40 am ET

BOSTON - Federal authorities have arrested eight more people in connection with the Galleon insider-trading scandal, sources familiar with the matter said on Thursday.


A trader points towards a screen displaying stocks
A trader points towards a screen displaying stocks, February 20, 2008. (REUTERS / Athar Hussain)
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The sources said authorities intend to announce the filing of charges against 14 new defendants, including the eight arrested.

The new arrests come nearly three weeks after Raj Rajaratnam, the billionaire founder of hedge fund firm Galleon Group, and five others were charged in the case.

Galleon, a prominent New York-based firm that once managed $7 billion and specialized in technology and healthcare companies, has since shut down.

Industry sources said they had expected more arrests as authorities probe the scandal, which has unnerved the $1.4 trillion hedge fund industry at a time when performance was improving and investors were committing new money.

(Reporting by Matthew Goldstein, Svea Herbst-Bayliss; editing by John Wallace)

Copyright 2009 Thomson Reuters. All rights reserved.

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1.
Nov 7, 2009 3:44am

Secret Software & Naked Short Selling We need NSS arrests - not Insider Trading arrests It is November 5th, 2009 at high noon and the SEC is all over the news about another arrest. They are all on stage giving this big press conference on 14 arrests for Insider Trading connected to the Galleon Group investigation. Is it Insider Trading? The Government wanted the world to believe this caused the financial meltdown on Wall Street. Three weeks earlier the SEC made the first arrest for Insider Trading involving Raj Rajaratnam and 5 other people on Wall Street. It is my opinion that the Government and the SEC is involved in a cover up to try and make people think that it was insider trading that caused the crisis of 2008. Let the truth be known. The news media, along with Goldman Sachs and many other Wall Street companies and people of power are all involved in the biggest cover up in the history of the United States. It involves greed to the fullest extend. The SEC is responsible, under the leadership of Christopher Cox in July 2007, the Securities Exchange Commission abolished the Up Tick rule. The elimination of the Up Tick rule created a wave of corruption that grew out of control, based on Naked Short Selling and the use of secret software and super fast computers. Insider trading has played a role in the financial crisis, yet the story not being told by the news media is the arrest of a Goldman Sachs employee who tried to steal Goldman Sachs secret software. This arrest came over the July 4th Holiday week-end and was aired briefly on a Saturday night on TV and then came Monday July 6th, 2009 and the story disapeared. A few weeks later Goldman Sachs reported its FY 2009 2nd QT earnings ( April – May -June ) and Goldman Sachs made over $100 million dollars a day in 46 of the 64 trading days for that quarter. How could this be possible after a 17 month recession. Wall Street changed two major Laws. The first being the use of decimal places (2001 )instead of fraction. Years later and after they lobbied for the removal of the Up Tick rule ( 2007 ) the secret software was designed and in place ready to go into full operation now that Wall Street was allowed to naked short sell millions upon millions of shares that Goldman Sachs and other hedge funds didn’t even own and failed to deliver. Their greed took over, who wouldn’t , when Goldman Sachs was making over $100 million a day in trading. They destroyed companies like Sirius XM radio and overstock.com and many others. Then they began naked shorting the banking industry and attacking each other. This is the truth that the news media, corporate Amercia, the SEC, the Government, Goldman Sachs, Hank Paulson and the many others that were in power have not told the American people and the world. Now, as I write this letter, they are now trying to con the world into thinking it was insider trading that caused 95% of the middle class workers to lose 20% - 60 % of their investments and 401K’s. In the end the Entire story will be told and I hope I get my chance to tell it. Check the facts. There was an arrest of that Goldman Sachs employee in July 2009. Why was it covered up? Where are the arrests for Naked Short Selling and Goldman Sachs use of their secret software that stole the wealth off investors all across the country. It will go down as the biggest scandal in history.

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