<p>These people are sucking the blood of taxpayers. I hope this guy goes to jail for 10-15 years but most likly will get a slap on the wrist. I do not see him even getting in 1-2 year for this crime. He will hire best lawyers and will get scoot free for making this much money with inside trading. </p>
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<p><a href=“http://www.cnbc.com/id/33343625[/url]”>http://www.cnbc.com/id/33343625</a></p>
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I will take the other side of that bet, and I have no insider information on this case! I think he will get many years in jail, even with a plea bargain. The DA seems to think this is a very important and significant case and the public climate is so anti-market people. All of the defendants will get stiff sentences > 10yrs. They also seem to have lots of evidence from wiretaps. How bout those corporate executives too!? IBM and INTEL? string em up!</p>
<p>I agree with NJres. These guys are also going to pay big time. All of their profits, plus a huge $$ penalty.</p>
<p>The Intel guy managed their investments - he didn’t sound like a corporate exec. The IBM guy did sound pretty important. I don’t get the greed. The Intel and IBM guys were likely paid well. The billionaire risks jail to make a few million?</p>
<p>How he does will probably depend on his connections. Martha Stewart was made an example of because she didn’t have connections. He thing was about a trivial amount of money too and she went to jail. Putting this billionaire away will probably provide relief to the other financial criminals out there as they will think that the heat is off now that they’ve had a show-trial.</p>
<p>How does someone become a billionaire managing a 3 Billion dollar hedgefund?</p>
<p>How does someone become a billionaire managing a 3 Billion dollar hedgefund? </p>
<p>Multiple Choice:</p>
<ol>
<li>Start with a $6billion hedge fund.</li>
<li>You are managing your own money</li>
<li> Ask Bernie - anything is possible in America.</li>
</ol>
<p>Bernie’s too busy pushing other inmates to the ground to respond.</p>
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<p>He’s been doing it for 10-15 years and there have been two bubbles in that time period. Galleon got as high as $7 billion.</p>
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<p>He’s a hedge fund. He has no government money.</p>
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<p>The Intel guy is part of Intel Capital, their VC arm. He is certainly a corporate exec, just not one in chip-making operations. </p>
<p>Everyone is trying to make more money- motivations are need for accomplishment and the fact that there is always someone else with more money to gun for. </p>
<p>The billionaire got to be a billionaire with similar insider information investing. The probe has exposed 5 of 500 illegal acts. This is not over just a few million.</p>
<p>Not surprising. I haven’t met too many 35K-per-year workers who were in a position to engage in inside trading.</p>
<p>There is value in being content with what you have.</p>
<p>According to the indictment, the IBM executive is facing 5 years and a minimum $250K fine. Nobody wants to do jail time but the fine is sort of piddling for a guy who likely has a salary of at least $500K.</p>
<p>Maybe we’ll get lucky and some civil suits will be brought against the guy.</p>
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<p>I believe in insider-trading cases, the SEC usually brings a parallel civil action, which requires the repayment of profits plus a penalty of 3 times profit. So add that to the criminal fine, and it can get substantial.</p>
<p>Lake Washington - the range of fines is set by statute and not by how much money the suspect may have. </p>
<p>Glad to see class envy drives your perception of the law. </p>
<p>And I have no desire to defend any of these suspects. But it is helpful to remind you that we do live in a society where criminal penalties and fines are set by statute, and not by an arbitrary arbiter.</p>
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No doubt. Anyone remember the dot-com era craze and the VCs flipping shares to their buddies for an instant profit? Frank Quattrone was charged and convicted of giving his pals, the so-called “Friends of Frank”, millions in profits from these shares. But money talks, and a few series of appeals later all charges were dropped.</p>
<p>Expect the same end result here for the wealthiest of those charged. The headlines and televised “perp walks” are supposed to make you think the government is tough on Wall Street.</p>
<p>No. I actually think we’ve reached critical mass on this one, like what happened with Millikin. The Hedge funds are not at all the darlings of the fed and treasury that the too big to fail banks are. Also, this is a very separate situation, though it may “seem” and “feel” similar to the public, which is why they will take advantage of it to prosecute them to the fullest extent of the law and to punish them that way, as well. Justice is influenced by public opinion to some extent, really, and at this point they’ve got to jail some of the profiteers. Hedge fund guys are going to be the target, because the gov’t does not “need” them not to fail. I think we’ll see some real jail time for these guys, as well as a few others.</p>
<p>I’m amazed that people “earn” that much money. Just for kicks I decided to get a realistic handle on how much a billion dollars is.</p>
<p>Say you have $1 billion.</p>
<p>Cash it all in and buy muni bonds.</p>
<p>Assume 2% yield on the bonds.</p>
<p>Each week you gain a little over $350,000.</p>
<p>Kei</p>