Rajaratnam’s Former Employee Avoids Prison [eVestmentHFN] A former portfolio manager at the now-defunct hedge fund firm Galleon Group avoided prison on Tuesday by providing information that put Galleon founder Raj Rajaratnam in jail. The New York Times reported that Federal Judge Jed Rakoff sentenced Adam Smith to two years probation, one of the lightest sentences received by an individual involved in an insider trading case.
SEC Charges Phil Falcone [eVestmentHFN] Bad news never seems to end for Phil Falcone. The New York Timesreported that the Securities and Exchange Commission filed charges against Falcone and his hedge fund Harbinger Capital Partners on Wednesday, accusing the hedge fund manager of taking a loan from his firm for personal use, giving preferential treatment to certain investors, and manipulating the market price of certain bonds and stocks.
SEC Delays Rules for JOBS Act Provisions [eVestmentHFN] It looks like the Securities and Exchange Commission will not make its July 4 deadline to adopt final rules for the JOBS Act provisions allowing hedge funds to market to potential investors more freely. The Wall Street Journal reported that SEC chairman Mary Schapiro testified before the U.S. House oversight committee on Thursday that she expects the agency to issue the rules later this summer.
Whatever You Do, Don’t Ever Bad Mouth Jamie Dimon In Front Of Leon Cooperman [BusinessInsider] Big ups to our friends at Dealbreaker for grabbing this gem from a long Bloomberg Markets profile of the legendary Leon Cooperman. Cooperman, the founder of hedge fund, Omega Advisors, is known for being a great stock picker. And since 2009 he’s been buying up shares of JP Morgan — that means he probably has quite a lot of them.