Saturday, October 17, 2009

Fraud in the New York Stock Exchange Revealed

The biggest fraud in the financial sector in New York, United States, revealed, Friday 16 October 2009. Six players, including the richest U.S. citizen of Sri Lanka descent also arrested. Charges put to them is the practice of insider trading in the stock prestigious world, Wall Street, New York. Raj Rajaratnam, one of the richest U.S. citizen of Sri Lanka descent, including people who were arrested. Intentions go to London, England, a day before the arrest is unknown. Because of that, him travel ban imposed more than 170 miles from his home in New York.

Raj Rajaratnam ArrestedThe six men accused of conspiring, using information from companies whose shares are traded, as well as analysts from the companies that have financial data company. Rajaratnam worked as an investment director at the Galleon Group, an investment fund management company with managed assets worth $ 7 billion U.S. dollars. Which he managed the company reap big profits and make Rajaratnam admired as a strategic investment.

Joseph Demarest, Jr., head of the FBI New York branch, said, "Clearly, the benefits Galleon Group is not obtained from investing acumen, but at the expense of public funds, which helped make buying and selling actions of market shares." This, among others, made by selling shares at a company known to be losers. On the other hand, the advantage gained by buying shares of the company, which is known to achieve a profit.

The condition of the company was known by Rajaratnam because he got information from someone inside. Shares of companies that participated played a Hilton property, Google. The people involved include staff games Moody's Investor Services, IBM. "He's not the master of investment. He was a master of deception, "said Robert Khuzami, Director of Legal Affairs of the U.S. Stock Exchange.

No comments:

Post a Comment

Free Comments, Positive and no SPAM !!!!