About a month and a half ago, the billionaire hedge fund manager Raj Rajaratnam was convicted of insider trading. It was great news for Wall Street and hedge fund managers because it reaffirmed trust in the industry (whether or not it's deserved). Bloomberg Markets Magazine quoted big time hedge fund manager Lee Ainslie saying that his worst nightmare would have been Raj going free.
Even if you've been following the trial extensively, you'll be surprised by the new details revealed in an article in this week's New Yorker. Here are the new details:
Raj flew a group of people on his private plane to the Superbowl every year for a weekend of partying
The investigation into Galleon began with a letter that was sent to the SEC. It read:
“It is hedge funds like Galleon Group that create wealth for their shareholders and themselves at the expense of innocent investors... Insider trading word in this fund should be changed to insider partnership and prostitution... Prostitution is rampant for executives visiting Galleon. You will find that the Super Bowl parties for the executives, paid for by Galleon Group, include prostitutes and other forms of illegal entertainment. In return, the executives provide Galleon the unfair edge that the fund leverages so well. The letter was signed, Seeking integrity in business.
Even more fascinating: what happened when they all got caught….
Read more: http://www.businessinsider.com/new-details-about-raj-kumar-chiesi-and-what-happened-when-they-got-caught-2011-6#ixzz1QAmYpaZx
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