FBI Question

So some FBI agents just stormed the firm I work at. What should I do? Can I just tell them to mind their own business like I did in the past? I have no qualms calling my cousin Vinny to straighten them out.

Tell them to bugger off. If that doesn’t work, tell them that the kiddie porn on your computer is part of a private research project. If all else fails, tell them CFA > FBI

CFA > Obama

CFA or CIA?

My business cards say “Captain Windjammer, FBI”.

well my says: adalfu, Cat Fanciers’ Association

One of these firms? http://www.finalternatives.com/node/14652

Aren’t you supposed to offer them a bribe??

Hey CFAvsMBA. Where do you work? I’ll shoot my resume over. I have a feeling you’ll have a few vacancies soon.

I think they are getting ready to raid SAC…

Financial analysts have a name for this: The mosaic theory. And according to that theory, it’s legal to assemble non-public, non-material facts into a material, non-public picture of what is going on. That may be fine in theory, but it won’t stop an aggressive prosecutor intent on bagging the next Ivan Boesky, said Adam Hoffinger, a former federal prosecutor who now practices white-collar defense at Morrison Foerster in Washington. “What you have to worry about is, even if the small piece you got is not material, a prosecutor looking through the glass darkly will piece it together,” said Hoffinger, who worked on insider-trading cases during his five years in the Southern District of New York in the late 1980s. “If I were counseling somebody ahead of time, I’d tell them don’t bank on it.”Instead of the mosaic theory, Hoffinger concentrates on the Pinkerton Theory. Named after a 1946 Supreme Court case involving a pair of brothers accused of evading federal liquor taxes, it lets prosecutors go after conspirators even if they don’t know all the other conspirators, participate in an actual crime, or understand the grand scheme of the plot. They can be liable for the crimes of their co-conspirators if prosecutors can prove they knew something illegal was likely to occur. http://blogs.forbes.com/danielfisher/2010/11/22/massive-case-may-push-the-envelope-of-insider-trading/?boxes=Homepagelighttop

That is interesting, but I’ll bet very few of those correctly convicted of insider trading are surprised that what they were doing was considered illegal.

This will sure force markets to be efficient… make it illegal to have an investment case.

I doubt there’s much chance of the Feds cracking down so hard on this that it has those kinds of adverse effects - surely too many and too clever cheaters and not enough SEC/FBI manpower.

I also doubt that the Feds will in fact be going after too many legitimate investment activities. The guy quoted above defends the alleged baddies (who are of course entitled to representation) after all.

Hopefully they won’t be going after any legitimate investment activities. But it’s not just hedge funds. MFS, Janus, Wellington…this is going to get ugly. We should place bets on who we think is next.

Don’t these clowns have something better to do?

Something better than protecting the integrity of our capital markets?

During the summers in high school I used to work in a wait staff at a country club. On average, I spent about 80-100 hours a week with the same people, setting up rooms, waiting tables, preparing for parties, etc. Of course, we had a lot of down time and to fill it we used to play poker. Now, I’m not a great player, but I would consider myself above average. But one of the guys used to dominate all of us. He would fold at the right times, call bluffs, slow play, the works. For the most part we all sucked and this guy clearly had been playing for years, but it was still pretty impressive how often he won. Anyway, fast forward 10 years, and I see him on an NYC subway platform, me all decked out in a $250 men’s wearhouse suit, him looking like he still had the same job. We chat for a bit and since the only thing I know about him is cards, I finally ask him how he was able to win all those times. His response, “It’s simple, I cheated.” Mr. Sac Capital was able to return 30% annualized since the late ‘90s. His only negative year was 2008 and, from what I hear, he mostly trades S&P components (arguably the most liquid and efficiently priced securities out there) with 2 to 30-day holding periods. Sounds a little suspect to me.

LBriscoe Wrote: ------------------------------------------------------- > During the summers in high school I used to work > in a wait staff at a country club. On average, I > spent about 80-100 hours a week with the same > people, setting up rooms, waiting tables, > preparing for parties, etc. Of course, we had a > lot of down time and to fill it we used to play > poker. Now, I’m not a great player, but I would > consider myself above average. But one of the guys > used to dominate all of us. He would fold at the > right times, call bluffs, slow play, the works. > For the most part we all sucked and this guy > clearly had been playing for years, but it was > still pretty impressive how often he won. > > Anyway, fast forward 10 years, and I see him on an > NYC subway platform, me all decked out in a $250 > men’s wearhouse suit, him looking like he still > had the same job. We chat for a bit and since the > only thing I know about him is cards, I finally > ask him how he was able to win all those times. > His response, “It’s simple, I cheated.” > > Mr. Sac Capital was able to return 30% annualized > since the late ‘90s. His only negative year was > 2008 and, from what I hear, he mostly trades S&P > components (arguably the most liquid and > efficiently priced securities out there) with 2 to > 30-day holding periods. Sounds a little suspect > to me. He said that so you would feel better :slight_smile: