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September 2021


How to Become a Bounty Hunter

Tag: Wall Street

Justice Department’s Pledge to Get Tough is “Beyond Laughable,” Writer Says

Rolling Stone

I don’t want to sound like a broken record, but . . . the latest ploy by the government to insist it is “getting tough” on Wall Street is beyond laughable.

The tough new-and-improved regime, as described by the curiously credulous Dealbook, is a policy of extracting criminal guilty pleas from foreign subsidiaries, as opposed to the “usual fines and reforms.” This was the path chosen in the recent UBS deal (in which a Japanese subsidiary was charged while the parent company was given a complete walk, a non-prosecution settlement) and in the more recent deal with the Royal Bank of Scotland. Both of those banks were implicated in the LIBOR rate-fixing case, which is only maybe the most egregious and far-reaching financial scandal of our generation.

To read more click here.


Janice Fedarcyk, First Woman to Head N.Y. FBI, Retiring to Join Private Sector

Steve Neavling 

Janice Fedarcyk, the fist woman to head the N.Y. FBI office, who oversaw some major terrorists, mob and Wall Street probes,  is retiring  to enter the private sector, the Wall Street Journal reports.

Janice Fedarcyk, assistant director in charge of the New York bureau, plans to start a consulting firm in Washington D.C., where her husband, a retired FBI agent, works.

During her tenure, Fedarcyk’s office cracked down on insider trading and computer attacks.

Some of the prosecutors involved in the insider-trading investigation have also left the federal government for the private sector, according to the Wall Street Journal.

Before coming to New York, Fedarcyk had headed up the Philadelphia office. She began her career with the FBI in 1987 in Los Angeles.

In New York, she oversaw:

  • The investigation and arrest of Ahmed Abdulkadir Warsame, al Shabaab leader for providing material support to al Qaeda.
  • Processing and dissemination of all intelligence following the Bin Laden raid in Pakistan.
  • Arrest of leadership and members of Anonymous and/or offshoot groups related to Anonymous, including “Internet Feds,” “LulzSec,” and “AntiSec,” for computer hacking and other crimes. Click here for more details.
  • The largest coordinated, national takedown of members of the five Organized Crime Families of La Cosa Nostra, including some of its most senior members.
  • The arrest of eight active and retired NYPD officers.
  • Arrest and subsequent guilty verdicts of Raj Rajaratnam, the founder and former head of the Galleon Group, and Rajat Gupta, a former corporate chairman and member of the Board of Directors at Goldman Sachs, for insider trading.
  • Arrest and subsequent guilty plea of Peter Madoff, Bernard L. Madoff Investment Securities LLC former Chief Compliance Officer and Senior Managing Director, for Securities Fraud and Tax Fraud Conspiracy.
  • Investigation, arrest, and subsequent guilty verdict for New York State Senator Pedro Espada and his son for embezzlement.
  • Investigation, arrest, and subsequent guilty plea from New York State Senator Carl Kruger for bibery schemes.
  • Investigation and arrest of New York State Assemblyman William Boyland for bribery and attempted Hobbs Act Extortion. Details here.
  • Numerous acts of piracy investigated by the FBI off the coast of Somalia. Included dozens of arrests for piracy, murder, and other offenses.


Feds Land Big Insider Trading Conviction With Rajat Gupta

By Steve Neavling

 A federal crackdown on illicit trading on Wall Street netted its latest catch with the conviction of Rajat Gupta, a business insider and former board member of Goldman Sachs Group Inc., Reuters reports.

Gupta was convicted Friday on charges that he leaked confidential information about Goldman Sachs during the peak of the economic crisis.

He faces up to 25 years in prison after being found guilty of four criminal counts, according to Reuters.

The case is the latest victory by the U.S. Attorney’s Office in Manhattan, which has launched an aggressive campaign to bust insider trading.

Michael Douglas Helping FBI Fight Insider Trading

New York Times

Gordon Gekko is cooperating with the F.B.I.

No, there’s not another big-budget Oliver Stone follow-up to “Wall Street” in the works. Instead, Michael Douglas, who played the financier in the 1987 movie and the sequel, is now starring in a straight-to-television video for the Federal Bureau of Investigation meant to root out insider trading — the same crime that brought down the high-flying Mr. Gekko.

A one-minute spot that points out that illicit trading is, in fact, illegal might not seem a priority. But the new video — now showing on CNBC and Bloomberg Television — is part of the government’s broader initiative aimed at drawing cooperating witnesses and tipsters from Wall Street.

To read more click here.

FBI Says Billions in Financial Crime Restitution (AP)

FBI Makes Insider Trading Arrests

New York Times

Federal authorities announced insider trading charges against seven people on Wednesday, accusing them of earning nearly $62 million illegally trading on shares of Dell.

The Federal Bureau of Investigation arrested four people across the country as part of the case, an escalation of the government’s aggressive insider trading investigation.

The three other people named in the criminal complaint — Spyridon Adondakis, a former Level Global technology analyst known as Sam; Jesse Tortora, a former Diamondback Capital Management analyst; and Sandeep Goyal, a former junior analyst at Neuberger Berman — are cooperating with the investigation.

To read more click here.

Read statement from head of NY FBI.

FBI Investigates Japanese Bankers’ Big Pay-Off

By Danny Fenster
Who knew an advisory roll could pay out so well? 

Hajime Sagawa and Akio Nakagawa, two Japanese bankers, spent their career moving from firm to firm on Wall Street, reports the New York Times. Then, when advising the Japanese company Olympus–largely successful in medical equipment but better known as a camera maker–on their takeover of a British company, the two bankers were paid $687 million.

“But the fee amount was more than 30 times the norm on Wall Street,” reports the Times. And now the FBI is investigating.

“This is about following the money,” Jonathan R. Macey, a professor of corporate law and governance at Yale, told the Times. “It’s very unusual and raises a classic red flag, pointing to either a waste of company assets or corruption.”

The payment went in part to “a tiny, unknown firm,” says the Times, run by the two bankers, and the rest to a Caymen Islands company with ties to one of the two men. Both firms closed up shop shortly after the payments were made.

The focus of the investigation is not yet clear, and spokespeople for the FBI declined the Times requests for comment.

To read more click here.

NASAQ Isn’t the Only Thing Going Down: Ex-Managing Director of NASDAQ Gets 3 1/2 Years for Insider Trading

By Allan Lengel

Donald Johnson, a former managing director of the NASDAQ Stock Market, was sentenced Friday to 3 1/2 years in prison for engaging in insider trading on multiple occasions using non-public information he obtained in his role as a NASDAQ executive, authorities said.

Johnson was also ordered to forfeit $755,066.

Johnson, 57, of Ashburn, Va., was sentenced by U.S. District Judge Anthony J. Trenga in Alexandria, Va.

He pleaded guilty on May 26 to one count of securities fraud and admitted that from 2006 to 2009, he purchased and sold stock in NASDAQ-listed companies based on material, non-public information, or inside information, that he obtained through his position as an executive at NASDAQ.

“Mr. Johnson’s insider status at one of our nation’s largest securities exchanges gave him access to highly sensitive information, which allowed him to anticipate the rise and fall of certain stocks,” said Assistant Attorney General Lanny Breuer.

“Armed with this insider information, Mr. Johnson made investing look easy. He pocketed hundreds of thousands of dollars. But he did it by exploiting his trusted position to gain an unfair – and illegal – advantage in the market. Today’s sentence should leave no doubt in the minds of investors inclined to cheat that insider trading is a serious crime, with serious consequences.”

al Qaeda in Yemen Might be Plotting Attacks on Wall Street

By Allan Lengel

FBI officials are warning major Wall Street banks that al Qaeda terrorists in Yemen may be plotting to attack their institutions or top executives, NBCNewYork reported.

The TV station reported that intelligence officials stressed that the threats were general in nature and there was “no indication of a targeted assassination plot” against any Wall Street executives.

At the same time, learned that authorities fear some executives names have popped up in discussions by terrorist.

The station reported that some of the information authorities gathered came from al Qaeda writings in places like “Inspire” magazine.

To read more click here.