----- Original Message ----- From: Gold Anti-Trust Action Committee To: [EMAIL PROTECTED] Sent: Thursday, March 01, 2007 5:15 PM Subject: [GATA] Top Wall Streeters charged in 'pervasive' insider trading ring
Top Wall Streeters charged in 'pervasive' insider trading ring Submitted by cpowell on 03:14PM ET Thursday, March 1, 2007. Section: Daily Dispatches By Larry Neumeister Associated Press via Yahoo News Thursday, March 1, 2007 http://news.yahoo.com/s/ap/20070301/ap_on_bi_ge/securities_fraud Husband and wife lawyers and 11 top Wall Street workers were charged Thursday with making more than $15 million in illegal trading profit through an alleged federal securities fraud scheme, authorities said. Linda Chatman Thomsen, director of the Division of Enforcement for the Securities and Exchange Commission, said in a statement that the case was "one of the most pervasive Wall Street insider trading rings since the days of Ivan Boesky and Dennis Levine" in the mid-1980s. "What is so alarming about the conduct alleged in the SEC's case isn't just the scope of the scheme ... but, sadly, who is at the center of it," she said. Besides the lawyers, defendants including registered representatives, compliance personnel, and hedge fund portfolio managers, improperly relied on hundreds of tips during five years of illegal trading, she said. "And this conduct didn't occur in obscure boiler rooms â?" but rather at what are commonly considered `top tier' Wall Street firms," Thomsen said. U.S. Attorney Michael Garcia said Wall Street professionals repeatedly traded on secrets revealed to them by insiders at UBS Securities LLC and Morgan Stanley and Co. Among financial professionals charged criminally in U.S. District Court in Manhattan was Mitchel Guttenberg, an executive director and institutional client manager at UBS. Garcia said Guttenberg, who worked in UBS's equity research department, accepted hundreds of thousands of dollars as he sold nonpublic information to two men regarding upcoming upgrades and downgrades in UBS analysts' securities recommendations. The men, David Tavdy and Erik Franklin, used the UBS inside information to each earn more than $4 million by executing profitable trades in various brokerage accounts they controlled, Garcia said. The attorneys, Randi Collotta, 30, who worked for Morgan Stanley & Co. Inc. in Manhattan, and her husband, Christopher Collotta, 34, who worked in private practice, were also among those criminally charged. Civil charges against 11 individuals and three entities were brought in a complaint filed by the SEC. In an indictment, prosecutors said Randi Collotta was an associate in Morgan Stanley's global compliance division when she passed inside stock tips to her husband, who gave it to others, resulting in illegal profits of hundreds of thousands of dollars between September 2004 and August 2005. After others made money from the tips, they paid Christopher Collotta cash that represented a portion of their profits, the indictment said. Guttenberg, Tavdy, Franklin and the Collottas all were charged with conspiracy to commit securities fraud and securities fraud, which carry potential penalties of up to 25 years in prison. It was not immediately clear who would represent them at an initial court appearance along with five others arrested Thursday. The four other criminal defendants have pleaded guilty to conspiracy, securities fraud and commercial bribery charges, prosecutors said. Mary Claire Delaney, a Morgan Stanley spokeswoman, said, "We have cooperated and are continuing to cooperate fully with authorities regarding a former employee who allegedly stole information from Morgan Stanley." Prosecutors said two insider trading schemes and two separate bribery schemes were part of the case. The SEC said the scheme involved unlawful trading ahead of upgrades and downgrades by UBS research analysts and corporate acquisition announcements involving Morgan Stanley's investment banking clients. It said the ringleaders of the UBS part of the scheme went to great lengths to hide their illegal conduct with tactics including a clandestine meeting at Manhattan's famed Oyster Bar and eventually the use of disposable cell phones, secret codes and cash kickbacks before the scheme unraveled. * * * Help Keep GATA Going GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at www.GATA.org. GATA is grateful for financial contributions, which are federally tax-deductible in the United States. Contact GATA [EMAIL PROTECTED] Gold Anti-Trust Action Committee 7 Villa Louisa Road Manchester, Connecticut 06043-7541 USA www.gata.org Recommended Sites Recommended Internet sites for daily monitoring of gold and precious metals news and analysis. Free sites: http://www.jsmineset.com http://www.cbs.marketwatch.com http://www.mineweb.com/ http://www.gold-eagle.com/ http://www.kitco.com/ http://www.usagold.com/ http://www.usagold.com/amk/usagoldmarketupdate.html http://www.GoldSeek.com/ http://www.GoldReview.com/ http://www.capitalupdates.com/ http://www.DailyReckoning.com http://www.goldenbar.com/ http://www.silver-investor.com http://www.thebulliondesk.com/ http://www.sharelynx.com/ http://www.mininglife.com/ http://www.financialsense.com http://www.goldensextant.com http://www.goldismoney.info/index.html http://www.howestreet.com http://www.depression2.tv http://www.moneyfiles.org/ http://www.howestreet.com http://www.minersmanual.com/minernews.html http://www.a1-guide-to-gold-investments.com/euro-vs-dollar.html http://www.goldcolony.com http://www.miningstocks.com http://www.mineralstox.com http://www.freemarketnews.com http://www.321gold.com http://www.SilverSeek.com http://www.investmentrarities.com http://www.kereport.com (Korelin Business Report -- audio) http://www.plata.com.mx/plata/home.htm (In Spanish) http://www.plata.com.mx/plata/plata/english.htm (In English) http://www.resourceinvestor.com http://www.miningmx.com http://www.prudentbear.com http://www.dollarcollapse.com http://www.kitcocasey.com http://000999.forumactif.com/ http://www.golddrivers.com/ http://www.goldpennystocks.com/ http://www.oroyfinanzas.com/ Subscription sites: http://www.lemetropolecafe.com/ http://www.goldinsider.com/ http://www.hsletter.com http://www.interventionalanalysis.com http://www.investmentindicators.com/ http://www.caseyresearch.com/ Eagle Ranch discussion site: http://os2eagle.net/SSL/phpentry.php Ted Butler silver commentary archive: http://www.investmentrarities.com/ Recommended Gold & Bullion Dealers Coin and precious metals dealers who have supported GATA and been recommended by our members: Blanchard & Co. Inc. 909 Poydras St., Suite 1900 New Orleans, Louisiana 70112 888-413-4653 http://www.blanchardonline.com Centennial Precious Metals Box 460009 Denver, Colorado 80246-0009 1-800-869-5115 http://www.USAGOLD.com Michael Kosares, Proprietor [EMAIL PROTECTED] Colorado Gold 222 South 5th St. Montrose, Colorado 81401 http://www.ColoradoGold.com Don Stott, Proprietor 1-888-786-8822 [EMAIL PROTECTED] El Dorado Discount Gold Box 11296 Glendale, Arizona 85316 http://www.eldoradogold.net Harvey Gordin, President Office: 623-434-3322 Mobile: 602-228-8203 [EMAIL PROTECTED] Gold & Silver Investments Ltd. 63 Fitzwilliam Square Dublin 2, Ireland ...and Tower 42, Level 7 25 Old Broad St. London, EC2N 1HN United Kingdom Local Call Ireland: 1-850-GOLD-IE UK phone: +44 (0) 207-060-4653 International: +353 1-632-5010 Fax: +353-1-6619664 www.gold.ie Investment Rarities Inc. 7850 Metro Parkway Minneapolis, Minnesota 55425 http://www.gloomdoom.com Greg Westgaard, Sales Manager 1-800-328-1860, Ext. 8889 [EMAIL PROTECTED] Kitco 178 West Service Road Champlain, N.Y. 12919 Toll Free:1-877-775-4826 Fax: 518-298-3457 ...and 620 Cathcart, Suite 900 Montreal, Quebec H3B 1M1 Canada Toll-free:1-800-363-7053 Fax: 514-875-6484 http://www.kitco.com Lee Certified Coins P.O. Box 1045 454 Daniel Webster Highway Merrimack, New Hampshire 03054 http://www.certifiedcoins.com Ed Lee, Proprietor 1-800-835-6000 [EMAIL PROTECTED] Lone Star Silver Exchange Suite 635, 3521 Oak Lawn Ave. Dallas, Texas 75219 214-632-8869 http://www.discountsilverclub.com MRCS Canada 12303-118 Ave. NW Edmonton, Alberta T5L 2K2 Canada http://www.mrcscanada.com Michael Riedel, Proprietor 1-877-TRY-MRCS 1-877-879-6727 [EMAIL PROTECTED] Miles Franklin Ltd. 1001 Twelve Oaks Center Drive Suite 1028 Wayzata, MN 55391 1-800-822-8080 http://www.milesfranklin.com Contacts: David Schectman, Andy Schectman, and Bob Sichel Missouri Coin Co. 11742 Manchester Road St. Louis, MO 63131-4614 [EMAIL PROTECTED] 314-965-9797 1-800-280-9797 http://www.mocoin.com Resource Consultants Inc. 6139 South Rural Road Suite 103 Tempe, Arizona 85283-2929 Pat Gorman, Proprietor 1-800-494-4149, 480-820-5877 [EMAIL PROTECTED] http://www.buysilvernow.com Swiss America Trading Corp. 15018 North Tatum Blvd. Phoenix, Arizona 85032 http://www.swissamerica.com Dr. Fred I. Goldstein, Senior Broker 1-800-BUY-COIN [EMAIL PROTECTED] The Moneychanger Box 178 Westpoint, Tennessee 38486 http://www.the-moneychanger.com Franklin Sanders 1-888-218-9226, 931-766-6066 You are subscribed to the GATA Dispatch mailing list. You can instantly unsubscribe from these emails by clicking here. Copyright © 1999-2006 All rights reserved. -------------------------------------------------------------------------------- No virus found in this incoming message. Checked by AVG Free Edition. Version: 7.5.446 / Virus Database: 268.18.5/706 - Release Date: 2/28/2007 4:09 PM