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	<title>AllThingsD &#187; conspiracy</title>
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		<title>Galleon Founder Convicted on All Counts in Insider-Trading Trial</title>
		<link>http://allthingsd.com/20110511/galleon-founder-convicted-on-all-counts-in-insider-trading-trial/</link>
		<comments>http://allthingsd.com/20110511/galleon-founder-convicted-on-all-counts-in-insider-trading-trial/#comments</comments>
		<pubDate>Wed, 11 May 2011 15:32:12 +0000</pubDate>
		<dc:creator>Michael Rothfeld and Chad Bray</dc:creator>
				<category><![CDATA[News]]></category>
		<category><![CDATA[Voices]]></category>
		<category><![CDATA[conspiracy]]></category>
		<category><![CDATA[fraud]]></category>
		<category><![CDATA[frontpage]]></category>
		<category><![CDATA[Galleon Group]]></category>
		<category><![CDATA[Goldman Sachs]]></category>
		<category><![CDATA[hedge fund]]></category>
		<category><![CDATA[insider trading]]></category>
		<category><![CDATA[Raj Rajaratnam]]></category>
		<category><![CDATA[trial]]></category>
		<category><![CDATA[Wall Street]]></category>

		<guid isPermaLink="false">http://voices.allthingsd.com/?p=40907</guid>
		<description><![CDATA[A federal jury convicted Galleon Group founder Raj Rajaratnam on all 14 counts of securities fraud and conspiracy, providing the U.S. with a significant win in a push to prosecute insider trading on Wall Street and in corporate America.]]></description>
			<content:encoded><![CDATA[<p>A federal jury convicted Galleon Group founder Raj Rajaratnam on all 14 counts of securities fraud and conspiracy, providing the U.S. with a significant win in a push to prosecute insider trading on Wall Street and in corporate America.</p>
<p>The verdict by the 12-member jury, following 11 days of deliberation, capped a blockbuster trial that started in early March featuring 45 recorded calls showing how the hedge-fund executive trafficked in insider tips provided to him by a web of contacts at the top tier of American business.</p>
<p>The widely watched trial exposed the behind-the-scenes dealings of a once-prestigious hedge fund that gained access to highly sensitive information about, among other things, Goldman Sachs Group Inc. at the height of the financial crisis. The government put at $63.8 million the amount in illegal profits and avoided losses Galleon realized through the scheme.</p>
<p><a href="http://online.wsj.com/article/SB10001424052748703864204576317060246641834.html">Read the rest of this post on the original site »</a></p>
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		<title>Seventh Person Arrested in Insider Trading Probe</title>
		<link>http://allthingsd.com/20101229/seventh-person-arrested-in-insider-trading-probe/</link>
		<comments>http://allthingsd.com/20101229/seventh-person-arrested-in-insider-trading-probe/#comments</comments>
		<pubDate>Wed, 29 Dec 2010 20:17:54 +0000</pubDate>
		<dc:creator>Arik Hesseldahl</dc:creator>
				<category><![CDATA[Enterprise]]></category>
		<category><![CDATA[News]]></category>
		<category><![CDATA[Arik Hesseldahl]]></category>
		<category><![CDATA[arrested]]></category>
		<category><![CDATA[buyback]]></category>
		<category><![CDATA[charged]]></category>
		<category><![CDATA[complaint]]></category>
		<category><![CDATA[conspiracy]]></category>
		<category><![CDATA[FBI]]></category>
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		<category><![CDATA[hedge]]></category>
		<category><![CDATA[hedge funds]]></category>
		<category><![CDATA[information]]></category>
		<category><![CDATA[insider]]></category>
		<category><![CDATA[insider trading]]></category>
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		<category><![CDATA[investors]]></category>
		<category><![CDATA[Marvell]]></category>
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		<category><![CDATA[Nvidia]]></category>
		<category><![CDATA[portfolio]]></category>
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		<category><![CDATA[probe]]></category>
		<category><![CDATA[quarter]]></category>
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		<category><![CDATA[Winifred Jiau]]></category>

		<guid isPermaLink="false">http://newenterprise.allthingsd.com/?p=1171</guid>
		<description><![CDATA[Another arrest of an expert consultant in the ever-widening FBI investigation into insider trading of tech companies.]]></description>
			<content:encoded><![CDATA[<p><img src="http://newenterprise.allthingsd.com/files/2010/12/gekko-275x179.jpg" alt="" title="gekko" width="275" height="179" class="alignright size-medium wp-image-1181" />The FBI has arrested another person in the ongoing investigation into the sharing of insider information with investors by consultants working for so-called expert firms.</p>
<p>The latest to be arrested is Winifred Jiau, 43, of Fremont, Calif. Like others <a href="http://newenterprise.allthingsd.com/20101216/four-arrested-in-tech-heavy-insider-trading-case/">charged or arrested on Dec. 16</a>, she has ties to Primary Global Research. She&#8217;s accused of providing inside information to Primary Global clients who were portfolio managers at hedge funds of Nvidia and Marvell Technology during a period from 2006 to 2008. Prosecutors say she collected $200,000 during that time. She&#8217;s facing charges of conspiracy and securities fraud.</p>
<p>In August of 2008, the complaint says, she provided managers of two hedge funds with detailed numbers for quarterly revenues, per-share earnings and gross margins for the quarter ending that month. The complaint says that in the conversations she made it clear she had obtained the information directly from an employee of Marvell. The funds in question&#8211;they were not named in the complaint&#8211;allegedly made $820,000 on trades from the information.</p>
<p>On Aug. 8, 2008, the complaint says, Jiau provided the hedge fund managers with an early look at Nvidia&#8217;s quarterly revenue and told them it planned to announce a stock buyback, which it did four days later.</p>
<p>I&#8217;ve embedded the complaint below.</p>
<p><a title="View Jiau, Winifred Complaint on Scribd" href="http://www.scribd.com/doc/46042154/Jiau-Winifred-Complaint" style="margin: 12px auto 6px auto; font-family: Helvetica,Arial,Sans-serif; font-style: normal; font-variant: normal; font-weight: normal; font-size: 14px; line-height: normal; font-size-adjust: none; font-stretch: normal; -x-system-font: none; display: block; text-decoration: underline;">Jiau, Winifred Complaint</a> <object id="doc_635689794989523" name="doc_635689794989523" height="600" width="100%" type="application/x-shockwave-flash" data="http://d1.scribdassets.com/ScribdViewer.swf" style="outline:none;" ><param name="movie" value="http://d1.scribdassets.com/ScribdViewer.swf"><param name="wmode" value="opaque"><param name="bgcolor" value="#ffffff"><param name="allowFullScreen" value="true"><param name="allowScriptAccess" value="always"><param name="FlashVars" value="document_id=46042154&#038;access_key=key-1fceklz34lmnh06uuih6&#038;page=1&#038;viewMode=list"><embed id="doc_635689794989523" name="doc_635689794989523" src="http://d1.scribdassets.com/ScribdViewer.swf?document_id=46042154&#038;access_key=key-1fceklz34lmnh06uuih6&#038;page=1&#038;viewMode=list" type="application/x-shockwave-flash" allowscriptaccess="always" allowfullscreen="true" height="600" width="100%" wmode="opaque" bgcolor="#ffffff"></embed></object></p>
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		<title>What Was That You Said, Greg? It's Not Illegal if You Don't Get Caught?</title>
		<link>http://allthingsd.com/20100329/what-was-that-you-said-greg-its-not-illegal-if-you-dont-get-caught/</link>
		<comments>http://allthingsd.com/20100329/what-was-that-you-said-greg-its-not-illegal-if-you-dont-get-caught/#comments</comments>
		<pubDate>Mon, 29 Mar 2010 17:18:23 +0000</pubDate>
		<dc:creator>John Paczkowski</dc:creator>
				<category><![CDATA[News]]></category>
		<category><![CDATA[backdating]]></category>
		<category><![CDATA[Brocade Communications Systems]]></category>
		<category><![CDATA[compensation]]></category>
		<category><![CDATA[conspiracy]]></category>
		<category><![CDATA[digital]]></category>
		<category><![CDATA[employees]]></category>
		<category><![CDATA[evidence]]></category>
		<category><![CDATA[expenses]]></category>
		<category><![CDATA[false statements]]></category>
		<category><![CDATA[federal jury]]></category>
		<category><![CDATA[financial]]></category>
		<category><![CDATA[generally accepted accounting rules]]></category>
		<category><![CDATA[Greg Reyes]]></category>
		<category><![CDATA[guilty]]></category>
		<category><![CDATA[John Paczkowski]]></category>
		<category><![CDATA[market]]></category>
		<category><![CDATA[options]]></category>
		<category><![CDATA[prosecutorial misconduct]]></category>
		<category><![CDATA[securities fraud]]></category>
		<category><![CDATA[shareholders]]></category>
		<category><![CDATA[stock options]]></category>
		<category><![CDATA[strike price]]></category>
		<category><![CDATA[testimony]]></category>
		<category><![CDATA[trial]]></category>
		<category><![CDATA[witnesses]]></category>

		<guid isPermaLink="false">http://digitaldaily.allthingsd.com/?p=37586</guid>
		<description><![CDATA[Former Brocade Communications Systems CEO Greg Reyes’s luck took a turn for the worse last week when he was once again found guilty of securities fraud. Though it acquitted him on one count of conspiracy, a federal jury on Friday found Reyes guilty on nine counts of securities fraud and making false statements--the same ones overturned last August because of prosecutorial misconduct.]]></description>
			<content:encoded><![CDATA[<p><img src="http://digitaldaily.allthingsd.com/files/2009/08/and-justice-for-all-150x150.jpg" alt="and-justice-for-all" width="150" height="150" class="alignright size-thumbnail wp-image-23287" />Former Brocade Communications Systems (BRCD) CEO Greg Reyes’s luck took a turn for the worse last week when he was once again found guilty of securities fraud. </p>
<p>Though it acquitted him on one count of conspiracy, a federal jury on Friday found Reyes guilty on nine counts of <a href="http://www.siliconvalley.com/news/ci_14765598">securities fraud and making false statements</a>&#8211;the <a href="http://digitaldaily.allthingsd.com/20090819/former-brocade-ceo-hello-bofa-yes-i%E2%80%99d-like-to-stop-payment-on-a-15-million-check/">same ones overturned last August</a> because of prosecutorial misconduct. </p>
<p>Reyes, as you may recall, was charged in 2007 with &#8220;routinely backdating stock options grants to give employees favorably priced options without recording necessary compensation expenses. From 2000 through 2004, prosecutors alleged, he used the virtually unchecked authority given to him to grant ‘in the money’ options to employees by falsifying in the options documentation the date on which the grants were made and thereby granting the options with below-market strike prices.&#8221; In doing so, prosecutors argued, Reyes defrauded Brocade shareholders and violated generally accepted accounting rules.</p>
<p>Interestingly, Reyes&#8217;s legal team in the former exec’s most recent trial, opted not to call any witnesses in his defense&#8211;evidently an unwise idea give the evidence against him, which included testimony about Reyes’s &#8220;It&#8217;s not illegal if you don&#8217;t get caught&#8221; attitude toward options backdating.</p>
<p>Reyes <a href="http://www.reuters.com/article/idUSN2624334120100327">will be sentenced on June 24</a>. His attorneys say they plan to ask the judge for a new trial.</p>
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		<title>Intel CEO Says Had No Knowledge of Trading Probe</title>
		<link>http://allthingsd.com/20091019/intel-ceo-says-had-no-knowledge-of-trading-probe/</link>
		<comments>http://allthingsd.com/20091019/intel-ceo-says-had-no-knowledge-of-trading-probe/#comments</comments>
		<pubDate>Mon, 19 Oct 2009 21:29:56 +0000</pubDate>
		<dc:creator>Rebecca Blumenstein</dc:creator>
				<category><![CDATA[News]]></category>
		<category><![CDATA[Voices]]></category>
		<category><![CDATA[conspiracy]]></category>
		<category><![CDATA[digital]]></category>
		<category><![CDATA[frontpage]]></category>
		<category><![CDATA[Galleon]]></category>
		<category><![CDATA[hedge fund]]></category>
		<category><![CDATA[insider trading]]></category>
		<category><![CDATA[Paul Otellini]]></category>
		<category><![CDATA[Rajiv Goel]]></category>
		<category><![CDATA[Rebecca Blumenstein]]></category>
		<category><![CDATA[securities fraud]]></category>
		<category><![CDATA[The Wall Street Journal]]></category>

		<guid isPermaLink="false">http://voices.allthingsd.com/?p=16774</guid>
		<description><![CDATA[Intel Corp.'s chief executive said the company had no advance warning or knowledge about the insider-trading investigation into Galleon Group, which has implicated an Intel executive.

"No one in our legal department or management knows anything about this," said Paul Otellini, chief executive of the chip giant, in an interview at The Wall Street Journal's headquarters in New York.]]></description>
			<content:encoded><![CDATA[<p>Intel Corp.&#8217;s (INTC) chief executive said the company had no advance warning or knowledge about the insider-trading investigation into Galleon Group, which has implicated an Intel executive.</p>
<p>&#8220;No one in our legal department or management knows anything about this,&#8221; said Paul Otellini, chief executive of the chip giant, in an interview at The Wall Street Journal&#8217;s headquarters in New York.</p>
<p>An executive in Intel&#8217;s treasury department, Rajiv Goel, is one of those facing conspiracy and securities-fraud criminal charges, as well as civil insider-trading charges, in the investigation into Galleon, a hedge fund at the center of the biggest insider-trading case in decades.</p>
<p><a href="http://online.wsj.com/article/SB10001424052748704500604574483463740407626.html">Read the rest of this post on the original site</a></p>
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		<title>HP Keeps the Ink Flowing</title>
		<link>http://allthingsd.com/20090819/hp-keeps-the-ink-flowing/</link>
		<comments>http://allthingsd.com/20090819/hp-keeps-the-ink-flowing/#comments</comments>
		<pubDate>Wed, 19 Aug 2009 17:00:08 +0000</pubDate>
		<dc:creator>John Paczkowski</dc:creator>
				<category><![CDATA[Media]]></category>
		<category><![CDATA[News]]></category>
		<category><![CDATA[AMC]]></category>
		<category><![CDATA[Apple]]></category>
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		<category><![CDATA[fourth quarter]]></category>
		<category><![CDATA[fraud]]></category>
		<category><![CDATA[Greg Reyes]]></category>
		<category><![CDATA[guilty]]></category>
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		<category><![CDATA[Hewlett-Packard]]></category>
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		<guid isPermaLink="false">http://digitaldaily.allthingsd.com/?p=23339</guid>
		<description><![CDATA[[ See post to watch video ]]]></description>
			<content:encoded><![CDATA[<p><div class="video-wsj"><object width="640" height="360"><param name="movie" value="http://s.wsj.net/media/swf/microPlayer.swf"></param><param name="allowFullScreen" value="true"></param><param name="allowscriptaccess" value="always"></param><param name="flashvars" value="videoGUID=5F3683DE-168B-4661-8FD2-E80C090EF3BE&playerid=4001&plyMediaEnabled=1&configURL=http://m.wsj.net/video-players/&autoStart=false" base="http://s.wsj.net/media/swf/"name="microflashPlayer"></param><embed src="http://s.wsj.net/media/swf/microPlayer.swf" bgcolor="#FFFFFF" flashVars="videoGUID={5F3683DE-168B-4661-8FD2-E80C090EF3BE}&playerid=4001&plyMediaEnabled=1&configURL=http://m.wsj.net/video-players/&autoStart=false" base="http://s.wsj.net/media/swf/" name="microflashPlayer" width="640" height="360" seamlesstabbing="false" type="application/x-shockwave-flash" swLiveConnect="true" pluginspage="http://www.macromedia.com/shockwave/download/index.cgi?P1_Prod_Version=ShockwaveFlash"></embed><br />[ See post to watch video ]</div></object></p>
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		<title>Former Brocade CEO: Hello, BofA? Yes, I’d Like to Stop Payment on a $15 Million Check.</title>
		<link>http://allthingsd.com/20090819/former-brocade-ceo-hello-bofa-yes-i%e2%80%99d-like-to-stop-payment-on-a-15-million-check/</link>
		<comments>http://allthingsd.com/20090819/former-brocade-ceo-hello-bofa-yes-i%e2%80%99d-like-to-stop-payment-on-a-15-million-check/#comments</comments>
		<pubDate>Wed, 19 Aug 2009 14:18:44 +0000</pubDate>
		<dc:creator>John Paczkowski</dc:creator>
				<category><![CDATA[News]]></category>
		<category><![CDATA[backdating]]></category>
		<category><![CDATA[BRCD]]></category>
		<category><![CDATA[Brocade]]></category>
		<category><![CDATA[Brocade Communications Systems]]></category>
		<category><![CDATA[compensation]]></category>
		<category><![CDATA[conspiracy]]></category>
		<category><![CDATA[conviction]]></category>
		<category><![CDATA[employee stock options]]></category>
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		<category><![CDATA[Wayne State University]]></category>

		<guid isPermaLink="false">http://digitaldaily.allthingsd.com/?p=23286</guid>
		<description><![CDATA[Another first for former Brocade Communications Systems CEO Greg Reyes. He was the first Silicon Valley CEO to be indicted on federal charges in the options backdating scandal of a few years ago and the first to be found guilty. And on Tuesday, he became the first to have his conviction overturned.]]></description>
			<content:encoded><![CDATA[<p><img src="http://digitaldaily.allthingsd.com/files/2009/08/and-justice-for-all-150x150.jpg" alt="and-justice-for-all" title="and-justice-for-all" width="150" height="150" class="alignright size-thumbnail wp-image-23287" />Another first for former Brocade Communications Systems (BRCD) CEO Greg Reyes. He was the <a href="http://blogs.siliconvalley.com/gmsv/2006/08/if_loving_your_.html">first Silicon Valley CEO to  be indicted on federal charges</a> in the options backdating scandal of a few years ago and the <a href="http://digitaldaily.allthingsd.com/20070808/greg-reyes/">first to be found guilty</a>. And on Tuesday, he became the <a href="http://online.wsj.com/article/SB125062156757340801.html">first to have his conviction overturned</a>.</p>
<p>Citing misconduct by prosecutors, a three-judge panel of the United States Court of Appeals for the Ninth Circuit in San Francisco ordered a new trial for Reyes, who had been convicted of 10 charges of conspiracy, fraud, making false regulator filings and falsifying records for backdating hundreds of employee stock options.</p>
<p>A favorable turn of luck for Reyes, who had been sentenced to 21 months in prison and ordered to pay a $15 million fine for misdeeds that, according to that three-judge panel, had been grossly exaggerated and perhaps even fabricated.</p>
<p> &#8220;Deliberate false statements by those privileged to represent the United States harm the trial process and the integrity of our prosecutorial system,&#8221; <a href="http://www.ca9.uscourts.gov/datastore/opinions/2009/08/18/08-10047.pdf">Judge Mary Schroeder wrote in the 3-0 ruling</a>. &#8220;We do not lightly tolerate a prosecutor asserting as a fact to the jury something known to be untrue or, at the very least, that the prosecution had very strong reason to doubt.&#8221;</p>
<p>The panel stopped short of throwing the case out entirely, noting that &#8220;there was no question that Reyes signed off on stock-option grants that were priced retrospectively and that the backdating allowed Brocade to understate its compensation expenses.&#8221; So the United States attorney could opt to retry the case, though that seems a bleak option at this point given the tenor of the ruling.</p>
<p>&#8220;This is the highest profile [backdating] case they had that went to trial, so I&#8217;d expect they will try it again, if for no other reason than for reputational purposes,&#8221; <a href="http://www.mercurynews.com/business/ci_13151062">Wayne State University law professor Peter Henning told the Mercury News</a>. &#8220;But talk about a case that&#8217;s stale.&#8221;</p>
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		<title>Sanjay Kumar Goes to White Castle Prison</title>
		<link>http://allthingsd.com/20080904/sanjay-kumar-goes-to-white-castle-prison/</link>
		<comments>http://allthingsd.com/20080904/sanjay-kumar-goes-to-white-castle-prison/#comments</comments>
		<pubDate>Thu, 04 Sep 2008 19:05:50 +0000</pubDate>
		<dc:creator>John Paczkowski</dc:creator>
				<category><![CDATA[News]]></category>
		<category><![CDATA[35-day month]]></category>
		<category><![CDATA[accounting practices]]></category>
		<category><![CDATA[affidavit]]></category>
		<category><![CDATA[Alfonse D'Amato]]></category>
		<category><![CDATA[CA]]></category>
		<category><![CDATA[Charles Wang]]></category>
		<category><![CDATA[conspiracy]]></category>
		<category><![CDATA[directors]]></category>
		<category><![CDATA[investigators]]></category>
		<category><![CDATA[John Paczkowski]]></category>
		<category><![CDATA[Lewis Ranieri]]></category>
		<category><![CDATA[obstruction of justice]]></category>
		<category><![CDATA[prison]]></category>
		<category><![CDATA[Russell Artzt]]></category>
		<category><![CDATA[Sanjay Kumar]]></category>
		<category><![CDATA[securities fraud]]></category>

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		<description><![CDATA[If I go down, you all go down. That’s the personal philosophy former CA CEO Sanjay Kumar appears to have embraced after serving a few years in prison for conspiracy, securities fraud and obstruction of justice. In a 27-page affidavit filed in court Tuesday, the disgraced Kumar claims that several current and former directors were aware of the company’s … generally unaccepted accounting practices and concealed them from government investigators.]]></description>
			<content:encoded><![CDATA[<p>If I go down, you all go down. That&#8217;s the personal philosophy former CA CEO Sanjay Kumar appears to have embraced after serving a few years in prison for conspiracy, securities fraud and obstruction of justice. In a 27-page affidavit filed in court Tuesday, the disgraced Kumar claims that several current and former directors were aware of the company&#8217;s &#8230; <a href="http://blogs.siliconvalley.com/gmsv/2006/11/sentenced_to_ja.html">generally unaccepted accounting practices</a> and <a href="http://www.newsday.com/business/ny-bzkuma0903,0,5354169.story">concealed them from government investigators</a>. Smeared in the <a href="http://amlawdaily.typepad.com/amlawdaily/files/kumar_declaration_08282008_31.pdf" />affidavit</a>: board members Lewis Ranieri and former U.S. Senator Alfonse D&#8217;Amato, as well as company co-founder Russell Artzt and former CEO Charles Wang.</p>
<p>Kumar alleges they were all aware of the <a href="http://www.usdoj.gov/opa/pr/2004/September/04_crm_642.htm">infamous &#8220;35-day month&#8221; ploy</a> for which he and eight other former CA (CA) officials took the fall. &#8220;Wang was not only aware of the accounting improprieties, such as the 35-Day Month, he also actively participated in concealing those improper accounting practices. &#8230; Wang knew that CA&#8217;s quarters were &#8216;open&#8217; for five days into the next month per his directive, and he sometimes instructed CA to keep CA&#8217;s books &#8216;open&#8217; after the usual &#8216;five days&#8217; to execute license agreements and recognize revenue from those agreements in the previously ended quarters.&#8221;</p>
<p>Damning allegations and ones Wang, D&#8217;Amato, et al., vigorously deny.<br />
<a href="http://online.wsj.com/article/SB122049724868198047.html">Said a spokesman for Ranieri and D&#8217;Amato</a>: &#8220;[Kumar] from jail continues to be a stranger to the truth.&#8221;</p>
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		<title>Broadcom Co-Founder: Up in Smoke</title>
		<link>http://allthingsd.com/20080606/ddv20080606/</link>
		<comments>http://allthingsd.com/20080606/ddv20080606/#comments</comments>
		<pubDate>Fri, 06 Jun 2008 18:00:06 +0000</pubDate>
		<dc:creator>John Paczkowski</dc:creator>
				<category><![CDATA[News]]></category>
		<category><![CDATA[acquisition]]></category>
		<category><![CDATA[back-dating]]></category>
		<category><![CDATA[Broadcom]]></category>
		<category><![CDATA[Carl Icahn]]></category>
		<category><![CDATA[cellphone]]></category>
		<category><![CDATA[chip]]></category>
		<category><![CDATA[conspiracy]]></category>
		<category><![CDATA[Digital Daily Live]]></category>
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		<category><![CDATA[drug]]></category>
		<category><![CDATA[fraud]]></category>
		<category><![CDATA[Google]]></category>
		<category><![CDATA[Henry Nicholas]]></category>
		<category><![CDATA[indictment]]></category>
		<category><![CDATA[Jerry Yang]]></category>
		<category><![CDATA[John Paczkowski]]></category>
		<category><![CDATA[Microsoft]]></category>
		<category><![CDATA[outsourcing]]></category>
		<category><![CDATA[price]]></category>
		<category><![CDATA[proxy fight]]></category>
		<category><![CDATA[Roy Bostock]]></category>
		<category><![CDATA[search]]></category>
		<category><![CDATA[Steve Ballmer]]></category>
		<category><![CDATA[stock options]]></category>
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