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...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 am ... and my career is over. I'll be like Martha f______ Stewart." Both Rajaratnam and Chiesi have...

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

...line, though, between legitimate information-gathering and illegal insider trading is hardly a clear one. Technically, no laws ban trading on non-public information; prosecutions are based on legal theories that were developed in earlier court cases. "It's one of those areas where the courts say, 'I know it when I see it,' " says Gerald Lefcourt, a white-collar criminal defense lawyer in New York and past president of the National Association of Criminal Defense Lawyers. (See pictures of the top 10 scared stock traders...

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

...case law maintains that two main things must be established for an act to be illegal insider trading. First, the information in question must be material and non-public. Second, revealing or trading on the information must entail knowingly breaching a duty of "trust or confidence." This can be a fiduciary duty, which an officer of a company would have to a firm's shareholders (perhaps an Intel managing director), or - as the Supreme Court has more recently found - a lower-level employee who has a broader duty to not share, or personally benefit from, his firm's proprietary information...

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

...United Nations Security Council has chosen its next five non-permanent members, to begin serving next January in the body charged with global security. What Bosnia and Herzegovina, Brazil, Gabon, Lebanon, and Nigeria will accomplish in their two-year terms remains to be seen, but already clear is the dire need for systemic reform in the structure of the Security Council...

Author: By The Crimson Staff | Title: Open Up the Club | 10/21/2009 | See Source »

Tassopoulos’ early career has proven to be a trial by fire, with the Crimson taking on a number of talented non-conference teams, including UMass, Michigan, and BU in consecutive weeks. As expected, such talented opponents have created a barrage of shots, and Tassopoulos has been forced to respond. The rookie has amassed 99 saves for an average of 8.25 per game, up from Harvard’s 5.41 a year ago and good for 9th in the nation. Tassopoulos has even notched 23 saves in a single contest, at then-No.5 Connecticut on Sept...

Author: By Max N. Brondfield, CRIMSON STAFF WRITER | Title: ATHLETE OF THE WEEK: Rookie Boosts D, Shuts Down Cornell | 10/20/2009 | See Source »

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