Insider Trading Wiretaps Under Scrutiny

Submitted By nimit1234
Words: 1096
Pages: 5
Open Document
http://finance.yahoo.com/news/insider-trading-wiretaps-under-scrutiny-192307025.html
Insider trading wiretaps under scrutiny in Rajaratnam appeal
By Grant McCool
NEW YORK (Reuters) - A panel of judges explored the ramifications Thursday of a potential reversal of hedge fund tycoon Raj Rajaratnam's conviction as they heard arguments on whether FBI wiretap evidence should have been allowed at his insider-trading trial.
The 2nd U.S. Circuit Court of Appeals did not indicate how it might rule on the Galleon Group founder's case. If Rajaratnam were to win reversal of his 2011 criminal conviction and sentence, it would be a huge blow to one of the Justice Department's biggest white-collar crime cases.
Rajaratnam's lawyers argue that investigators intentionally left out information about their probe from a March 2008 application to a judge to tap the one-time billionaire's cell phone. They say the decision by a different judge to allow the tapes to be played at Rajaratnam's trial was wrong.
"What happens if we agree with you, would there be a new trial?" U.S. Circuit Judge Robert Sack asked Rajaratnam's lawyer, Patricia Millett, at the start of Thursday's 50-minute hearing.
Millett responded that the government would have the opportunity to try Rajaratnam a second time, presenting evidence other than the phone calls secretly recorded by the FBI over nine months in 2008.
Rajaratnam, 55, did not attend the hearing. He is serving an 11-year prison term in Massachusetts, one of the longest sentences imposed for insider trading.
U.S. prosecutor Andrew Fish told the three-judge panel that the government "wasn't trying to hide" the information from then U.S. District Judge Gerard Lynch, who approved the wiretap application.
"All (the information) did was confirm that Judge Lynch would grant the wiretap," Fish said.
The Rajaratnam case marked the first wiretap for an insider trading investigation in the 75-year history of securities laws, Millett said. The appeals court's decision could have wide implications on future use of wiretaps in white-collar crime investigations.
A few wiretaps were also part of the government's case against former Goldman Sachs (GS.N) board member Rajat Gupta, who was convicted of tipping Rajaratnam with secrets about the investment bank. Gupta was sentenced to two years imprisonment on Wednesday.
The appeal is not expected to have an effect on the guilty pleas of scores of other people caught in the government's insider-trading crackdown of the last four years. Those defendants waived rights to appeal when they pleaded guilty.
Most of Thursday's hearing was taken up discussing Title III of the Omnibus Crime Control and Safe Streets Act of 1968, which governs the use of wiretaps in electronic surveillance of criminal suspects and is designed to protect constitutional rights to privacy.
Millett said that Title III requires the government to make "a full and complete statement" of the investigation's progress using conventional means before resorting to a phone tap. She said the March 2008 affidavit to Judge Lynch left out information about the U.S. Securities and Exchange Commission's parallel probe and a key cooperator, former trader Roomy Khan.
Millett said the wiretaps should have been suppressed because the affidavit "leaves on the cutting room floor, the sum and substance, the heart and soul of the most important aspects of this case. Left out."
The trial judge, Richard Holwell, in November 2010 declined Rajaratnam's request to suppress the wiretaps despite finding that Lynch did not have all of the information. Holwell is now a lawyer in private practice.
Rajaratnam was convicted of 14 counts of securities fraud and conspiracy in May 2011, but only after his sentencing five months later was he allowed to appeal the wiretap evidence.
The appeals court panel also included Judges Jose Cabranes and Susan Carney.
The case is USA v Raj Rajaratnam in the 2nd U.S. Circuit Court of Appeals No.
Show More

Related Documents: Insider Trading Wiretaps Under Scrutiny

Ethical Theories Assignment Essay

LP1.1 Assignment: Ethical Theories "Ethics" is the name of a branch of philosophy, which is the attempt to answer the most fundamental questions of human life by means of reason alone, rather than faith or tradition. Ethics is the continuing effort on the part of the human race to rationally analyze and evaluate the principles and ideals that might help us to understand which ways of life are most admirable and worth living, and which actions are right or wrong. At the beginning of medieval thought…

Words 1448 - Pages 6

Essay on Assignment Task on Career Development Theory

Assessment task 2: some tips You may find it helpful to revisit the content of the lectures in weeks 1 – 3 and the links in the slides to remind yourself of some career influences Read the material on career development theory in Career, More than Just a Job, pg 5-6 Consider the structure of your writing: Avoid simply ‘repeating’ everything your interviewees said, or writing an extended life story for each, then trying to analyse at the end. Also avoid analysing your interviewees as if they were…

Words 1105 - Pages 5

Swindon Charles Unit 1 Assignment Theory X Vs Essay

Theory X vs. Theory Y Swindon Charles CJ 503: Organizational Behavior 03/30/2015 Theory X vs. Theory Y In the 1960’s book “The Human Side of Enterprise,” MIT professor Douglas McGregor proposed two views in order to explain what motivates an individual to work and influences the manager in the management of such employee. Known as “Theory X and Theory Y,” McGregor asserts that Theory X employees are “naturally unmotivated and dislike working, and this encourages an authoritarian style of management…

Words 923 - Pages 4

Essay MGT 521 2 1427213318205

by integrating the text, course materials, research and critical analysis through integration and application of the learning. See the student website for additional recommended learning activities that may help you learn this week's concepts. Assignments Title Type Due Points Week One Participation Individual Mar 30, 2015 11:59 PM 3 Individual Mar 30, 2015 11:59 PM 2 Individual Mar 30, 2015 11:59 PM 3 Participate in the class discussion. MBA Overview Module Complete the MBA Overview Module…

Words 4020 - Pages 17

Essay on International Trade Theories

..................................................................................................................... 2 Comparative advantage theory ...................................................................................................................................................................... 3 What is the comparative advantage theory .................................................................................................................................... 3 Critical…

Words 1702 - Pages 7

AssignmentBrief 2 2010 Essay examples

BTEC ASSIGNMENT BRIEF Course: Btec Level 3 Health & Social Care Unit: Unit 4 – Development through the Life Stages Assignment: 2 – Changes due to the Ageing Process. Student Name: Issue Date: Submission Date: By completing the tasks in this assignment you will cover the following learning outcomes and grading criteria. Learning Outcome(s) Understand physical and psychological changes of ageing. Grading Criteria Pass Criteria Met (Assessor Signature) P4 Explain two theories of ageing…

Words 1154 - Pages 5

Essay Mgt 300 Module 3 Leadership and Teams

MODULE 3 LEADERSHIP AND TEAMS MGT 300 Module 3 CRITICAL THINKING ASSIGNMENT /CSU Choose one of the following two assignments to complete this week. Do not do both assignments. Identify your assignment choice in the title of your submission. Leadership and Teams – Theoretical Leadership Models Synthesize the topics of leadership and teams by crafting an essay in which, using supporting materials, you assess the theory and practice of leadership as it relates to teams. In your critical…

Words 907 - Pages 4

Citation and Vignette Analysis Essay example

Assignment 7 Vignette Analysis I: This assignment focuses on vignette analysis and direct application of course concepts to the persons and situations presented in the vignette for each question. All discussions must take into account the legal and ethical considerations, as well as issues of culture and human diversity that may pertain to the situations presented below. 11=12 pages Assignment 12 Vignette Analysis II: This assignment focuses on vignette analysis and direct application…

Words 315 - Pages 2

MK389 Assignment 2015 Upd Essay

Group seminar presentations contribute to 30% of the overall mark The individual assignment contributes to 70% of the overall mark Seminar activities (30%) Students will work in small groups within their seminar and make two assessed presentations on their chosen global brand. Further information on the seminar activities is detailed separately. Final Individual assignment (70%) The individual assignment is based on the development of a marketing communications plan for the launch of a product/brand…

Words 2631 - Pages 11

Coursework Q A 6 Essay

department, maternity ward applying relevant theory to them, or are we able to just pick out examples from any of the stages? A: No, you don't have to do it chronologically. One possible approach (given the limited word count and the need to avoid repetition) would be to introduce a framework and then use it to analyse as much of the encounter as you feel relevant and useful. Then you can look at the encounter from the perspective of a second framework or theory, and so on. You could even comment on the…

Words 1496 - Pages 6