When taking liberties means having your cake and then some…
Meet Raj Rajaratnam, billionaire and founder of tech hedge fund Galleon Group. He is about to spend a long time in jail it seems because of his predilection for money– too much money. But then again if insider trading is your thing what’s a bit of jail time against all those illegal profits?
Using tactics normally reserved for organized crime, drug syndicates, and terrorism prosecutions, the Justice Department caught Raj and a consortium of affiliates from Intel corp, IBM, McKinsey US Attorney Preet Bharara viz wire tapping in a game called “if you scratch my back, I will scratch yours”
Of course you’re probably all wondering how this fun game was played. It went something like this: after years of maintaining strategic friendships in strategic locales, Raj, with the aid of insiders, would place bets on various stocks. Once those bets were placed and earned, private nondescript accounts would then be set up where those special sums were placed. Yowza- payday!
The question this raises is how does a billionaire investor qualify his status as a cunning investor when he is essentially cheating? Or is it really just a pandemic way of behavior on wall street where guys like Raj don’t care about the law and are so above it all they continue their games of scratching their golden hewed backs.
Profits accrued include at least 17 million dollars to date: small change when you consider the billions firms like Goldman Sachs have made recently after being bailed out. All this while the general population withers in poverty. Then again that was sanctioned profit mongering…
If you are going to cheat and scratch backs make sure you scratch with the one person who never goes down- the Federal Reserve Bank.