Posts Tagged ‘Morgan Stanley’

Square Mile rocked by “insider” swoops and arrests / Martin

30/03/2010. Tags: , , , , , , , , , , , | This post has no Comments

Times Online writes that The Serious Organised Crime Agency raids on some of banking’s big names have sent shock waves through the City of London.


The men are suspected of being part of what the watchdog has described as a “sophisticated and long-running insider dealing ring”. The FSA believes the ring made “significant profits” by trading on secret information.

This was the fifth set of arrests since it launched a crackdown two years ago, though this is markedly different from the others. Previous efforts have homed in on fringe players — interns at investment banks, retired stockbrokers, silver surfers with online trading accounts, and occasional rogues at second-tier firms.

Last week’s arrests struck at the heart of the City. Dodgson, 38, is known by the bosses of almost all Britain’s big banks and insurers. He has been a trusted adviser on deals for the likes of HBOS and Legal & General. He even played a bit-part in advising the Treasury on the banking bailout. His CV reads like a roll-call of the City’s biggest investment banks: Cazenove, UBS, Morgan Stanley, Lehman Brothers and Deutsche.

The same is true of the other suspects. Clive Roberts, who was also questioned on Tuesday morning, is head of equities at Exane BNP Paribas. His clients include some of London’s biggest traders, such as Roger Guy, star fund manager at Gartmore.

Julian Rifat, 41, whose Oxfordshire home was raided at 4.45am on Tuesday, is a trader with Moore Capital. Every device in his home that could store information was removed by investigators — including his children’s iPods.

Other suspects include well-known brokers and traders in the AIM market, regularly spotted out and about in City wine bars.

If the FSA can prove its case, it will shake the City to its core.

“I’m absolutely disgusted,” said one senior City banker. “The idea that someone in our line of work could do anything with inside information appals me. We get inside information all the time — it’s part of the job. You assume that everyone respects that. It’s what we do. You simply could not function if you were to spend all your time thinking that members of your team may be trading on that information.”

In the City’s biggest banks, it is assumed that insider dealing is something that happens somewhere else. There are armies of compliance staff monitoring every trade.

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Ex-UBS executive jailed for insider trading / Siim

04/11/2008. Tags: , , , , , , | This post has no Comments writes about a former UBS executive was on Monday sentenced to six and a half years in prison for his role in a Wall Street insider trader ring. Mitchel Guttenberg, a former executive director in the equity research department of UBS Securities, pleaded guilty in February to securities fraud.

He was accused of giving traders at several hedge funds advance warning of stock upgrades and downgrades over a number of years in exchange for hundreds of thousands of dollars. He was one of 13 people, including current and former employees of Morgan Stanley, UBS and Bear Stearns, charged in March last year in what US authorities called one of the most pervasive insider trading rings since the days of Ivan Boesky during the 1980s.

Mr Guttenberg – who had faced a maximum of eight years imprisonment under federal sentencing guidelines – was sentenced to six and half years in prison followed by three years of supervision.

He was also told to forfeit $15.81m, reflecting the proceeds of the insider trading scheme from 2001-2006, the US attorney for New York’s southern district announced on Monday.

Prosecutors said Mr Guttenberg repeatedly sold non-public information regarding UBS analysts’ securities recommendations to securities traders.

Read the whole story …

SEC fears return of worst days of insider trading / Mait

05/06/2008. Tags: , , , , , | This post has no Comments

Linda Chatman Thomsen, the SEC’s director of enforcement warned that insider trading on Wall Street is starting to look as troubling as it was in the days of Ivan Boesky in the 1980s. Boesky was a Wall Street arbitrageur who was convicted of insider trading in 1987, spent two years in prison, and paid $100 million to settle lawsuits.

“The tippers and tippees have been in senior positions of trust and confidence,” told Ms Thomsen at recent compliance conference in Washington. “We are far from low-level employees or people on Main Street” said Ms Thomsen when expressing concern over “multiple incidences” of insider trading and cases involving professionals:

  • Last week, a former Ernst & Young partner was charged with allegedly passing insider trading information to an investment banker friend ahead of seven deals involving the accounting firm’s clients (see recent posting on this case).
  • In one of the most high-profile cases recently, 13 people, including a Morgan Stanley compliance officer and a UBS executive director, were charged in relation to an insider trading scheme.

According to Ms Thomsen the trend looks troubling and “the need to remind people of the consequences of this kind of behaviour is really acute,” she told.

SEC brought 47 insider trading cases last year, similar to the number in 2006. However, the number of defendants and respondents involved jumped 16% to 110 over that period and those involved have increasingly included people in senior positions such as partners, general counsels and compliance officers.

She said insider trading has also taken on a global nature, given the interconnectedness of markets. These and other types of enforcement issues therefore require greater global cooperation, and regulators are not just sharing information but “will be thinking about how to do global law enforcement”, she said.

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