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...Rajaratnam, a billionaire co-founder of the Galleon Group, and five others were arrested and charged with earning $20 million off stock trades on the basis of information unavailable to the public. Rajaratnam, whose firm manages $3.7 billion, allegedly relied on a broad network of sources, including executives at IBM and McKinsey & Co., for lucrative tips; one leak about a Google earnings report yielded his firm $8 million in profits in 2007, authorities said. The investigation was the first insider-trading probe to make use of wiretaps and may signal a tougher attitude toward white collar crime in the wake...

Author: /time Magazine | Title: The World | 11/2/2009 | See Source »

...will help put you over the top. Federal prosecutors have charged six people with conspiracy and securities fraud in a series of insider trades that allegedly netted more than $25 million in illegal profits. The defendants include higher-ups at two hedge funds as well as executives at Intel, IBM and the consulting firm McKinsey. Rajaratnam was arrested with the others on Oct. 16, but he promptly paid the $100 million bail so that he could return to work on Monday...

Author: /time Magazine | Title: Arrests Open a Window on Hedge-Fund Culture | 10/21/2009 | See Source »

...number of purported information leaks, which - if the allegations are proven true - fall into a truly special category of brazenness. For example: a Moody's bond-rating analyst sharing privileged information that the private-equity firm Blackstone was about to buy Hilton Hotels. A senior vice president at IBM handing over details of Sun Microsystems's financials, which he had access to only because IBM was contemplating buying Sun. A managing director of Intel passing along the company's revenue and profit numbers before they were publicly released and later asking his hedge-fund consort for a job with...

Author: /time Magazine | Title: Arrests Open a Window on Hedge-Fund Culture | 10/21/2009 | See Source »

...Office (criminal) and the Securities and Exchange Commission (civil) - contain some amazingly sordid snippets. In one, Rajaratnam and Danielle Chiesi, a portfolio manager at another hedge fund, apparently discuss how to avoid attracting the attention of regulators. In another, the two contemplate whether the senior vice president at IBM would be more valuable to them at a different firm. In a third, Chiesi, upon sharing non-public details about an upcoming reorganization of the microchip maker AMD, tells an alleged co-conspirator: "You put me in jail if you talk ... I'm dead if this leaks. I really...

Author: /time Magazine | Title: Arrests Open a Window on Hedge-Fund Culture | 10/21/2009 | See Source »

...know when Garry Kasparov took on that IBM computer in chess? This is sort of like that, only with cookies instead of chess, and an Excel spreadsheet instead of a giant computer and Kerry Simon instead of Kasparov. But still, it's better than Bruce Willis against hot robots without midsections...

Author: /time Magazine | Title: Do Wiki Recipes Work? | 10/9/2009 | See Source »

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