Forbes acknowledged billionaire turns out not a successful trader but a scammer

[Primero_247]

A billionaire Raj Rajaratnam, head of Galleon Management, a hedge fund advisory firm based in New York, was charged along with five other individuals by the Securities and Exchange Commission in a scheme that generated over $25 million in illegal gains.

According to the SEC’s filing Rajaratnam and his associates used confidential information about company earnings or takeover activity at several firms including Google, Hilton and Sun Microsystems so as to conduct illegal stock transactions.

In a statement Robert Khuzami, SEC enforcement director, reported that Rajaratnam's financial results were not a consequence of savvy trading but of savvy networking. "He cultivated a network of high-ranking corporate executives and insiders, and then tapped into this ring to obtain confidential details about quarterly earnings and takeover activity," said Khuzami.

Apart from Rajaratnam the SEC charged New Castle Funds portfolio manager Danielle Chiesi of New York, N.Y., Intel Capital managing director Rajiv Goel of Los Altos, Calif., McKinsey & Company director Anil Kumar of Saratoga, Calif., New Castle senior managing director and general partner Mark Kurland of Mount Kisco, N.Y., and IBM senior VP Robert Moffat of Ridgefield, Conn.

According to the New York Times report all six were arrested Friday morning. Five of the six are set to be arraigned in federal court in Manhattan Friday afternoon. Mr. Goel is set to be arraigned in California.

Mr. Rajaratnam, a native of Sri Lanka, is listed as No. 551 on Forbes’s 2009 list of the world’s richest people, with an estimated net worth of $1.3 billion.

Law-enforcement officials on Friday said that Mr. Rajaratnam’s success appeared built not on “genius trading strategies,” but on his insider-trading connections.

“He is not a master of the universe,” said Robert Khuzami, “He is a master of the Rolodex.”

 

[Gorod]

isnt this what they all do, just because they look good in a business suit and have professional mannerisms they can get away with it. LE should be looking into these forbes guys and waste no time here.

 

[rickard]

I concur with Gorod, those suits steal in minutes what others would take a year or more to do/try.

 

[basetrader]

del..............................

peace

 

[texas64]

i think he is one of us but higher up the chain please tell me that if you guys had the chance to do what he did or even half of what he did you would not jump at the chance
the only reason that carding is posible is because guys like this make the rules
so we benefit from there bigger scams
lol think about it if they wanted to stop us from doing what we do they could
but they dont because these white colar criminals profit from insurance when
we do what we do
these guys are no diffrent from us they are just higher up the chain
be thankful there is people like that out there
because if they were all straight shooters
this whole carding scence would be over a long time ago
well this is my opinion on the matter i dont exspect everyone to agree with me


peace

Well said bro, but in this world, its survival of the smartest and dogs eat dogs so even if those guys are making us survive, we have to be on ourselves and always be smarter then the average joe. We have to learn from our and others mistakes.