2006/Images/back.gif- 102 smart90.com/tvimagazine/2007/1407/109SpringMadness03Hedge.htm




A SPRING ISSUE - MARCH - tviNews Events -109 - TVInews Spring Madness Issue. "Follow the Money" with a Collateralized Debt Obligations backed by a home mortgage -- "The insider like the female pictured have been a hot product with many big investors" --says Troy Cory-Stubblefield, co-author of "BOA, The Tortfeasors". MORE

STRETCH Your Video-Image
with tviNews lookRadio












































• 02. Ivan Boesky
03. Insider$$
Related Stories

SPRING MADNESS - 02 / Tricks

SPRING MADNESS - 03 / Hedge Funds

ImagesCSnews/TroyCigDdiaries300w.jpg1. Feature Story / "Follow the Money" with a Collateralized Debt Obligations backed by a home mortgage. Such is a CDOs, say the insider like the pretty female pictured on the left. They have been a hot product with many big investors for many years: says Troy Cory-Stubblefield, co-author of "BOA, The Tortfeasors".
• • "In fact, in recent years" say Troy, "Hedge Funds Collateralized by China U.S. Treasury Bonds and Rogues at major firms have made big bucks for the managers, and have been used to help monitized the mortagage pools, and why not? It's their money." --SEE MORE ABOUT The Tortfeassors, AND MELVIN BELLI STORY.
• • The LA Times recently reported that: -- a Wall Street executive sat down with his friend ("Mr. Milton") -- in Manhattan's famed Oyster Bar about five years ago to discuss repaying a $25,000 loan.
• • But instead of cash, the Wall Street Bank rep offered a currency that's far more valuable on Wall Street: inside information about dozens of stock analyst recommendations at his firm, financial services powerhouse UBS.
• • Thus began what regulators described Thursday as one of the most pervasive insider-trading scandals since the days of Ivan Boesky, Milikin and Dennis Levine in the late 1980s.
• • Seeking to avoid detection, the men used disposable cellphones so there wouldn't be records of their calls and exchanged text messages in code, authorities said.
• • The purported scheme, along with an alleged separate plot at venerable Morgan Stanley also disclosed Thursday, involved 14 people, four major Wall Street firms, three hedge funds and at least $15 million in illicit profit, according to federal authorities.
• • "This involved people who should have known better and people who were making a great living," said Linda Thomsen, enforcement director at the Securities and Exchange Commission. "This is outrageous."
Part 02 - Ivan Boesky, what did he do? / Although insider trading has receded from public view since Boesky paid $100 million to settle federal civil charges, authorities fear that it's making a comeback in the financial markets.
• • In particular, they are worried that hedge funds -- lightly regulated investment pools that are often willing to take big risks in pursuit of big profits -- might be especially willing to flout the law to get an edge.
• • "Any time you have something that taints the industry, it's a topic of conversation," said George Rodriguez, a managing director at TradeTrek Securities, an institutional brokerage firm in Newark, N.J.
• • Holly A. Stark, a veteran trader now working as a consultant, said traders "have been talking for ages" about suspicious price movements in stocks ahead of significant news.
• • "There's always been a sneaking suspicion that there's information leakage," she said. "It's like, 'These guys are just not that smart.' "
• • In the UBS case, Guttenberg, 41, of Manhattan, and Franklin, 39, of Denville, N.J., concocted an elaborate scheme to trade on information available to Guttenberg, authorities said. Guttenberg was a manager in UBS' stock research department and sat on a committee that held daily meetings to review analyst recommendations, according to charges brought by the SEC and the U.S. attorney's office.
• • Their meeting at the Oyster Bar, a seafood eatery in Grand Central Station, took place in November 2001, just weeks after the Sept. 11 terrorist attacks. After Franklin recouped his $25,000, the two men shared the trading profits, with Franklin giving Guttenberg cash, according to the SEC's complaint, which was filed in U.S. District Court in Manhattan.
• • Guttenberg routinely tipped off Franklin to pending ratings changes on stocks such as Amgen Corp., Whole Foods Market Inc. and Union Pacific Corp., the SEC said.
• • Franklin then used this information to illegally trade securities for himself and two hedge funds he managed -- Q Capital Investment Partners and Lyford Cay Capital, a hedge fund at Bear Stearns Cos., the SEC said.
Part 03 SEC & Insider Tradeing / "The SEC has always brought insider-trading cases, but recently they've been getting more aggressive," said Thomas O. Gorman, a former attorney for the agency who heads the SEC practice at Porter Wright Morris & Arthur in Washington.
• • Insider trading typically involves someone with advance knowledge of an event that would influence the financial markets -- such as an analyst recommendation or a corporate acquisition -- trading ahead of the public release of that information. The gains these insiders usually reap come at the expense of investors who didn't have the same knowledge.
• • The emergence of hedge funds as a major force on Wall Street has added a new dimension to an old scam.
• • Early this year, the SEC opened an investigation into whether stock brokerages were supplying hedge funds with advance notice of customer orders for big trades. The hedge funds are suspected of buying or selling shares ahead of these orders and repaying their tipsters by steering trading business their way.
• • In the case disclosed Thursday, the SEC brought civil charges against 11 people, two hedge funds and a day-trading firm. The U.S. attorney's office in New York lodged criminal charges against 10 of those people and three others.
• • Most of the criminal defendants were arrested at their homes before dawn Thursday by FBI agents. Several were still being arraigned Thursday evening. None of the defendants or their lawyers could be reached for comment.
• • News of the insider-trading charges rippled through Wall Street investment firms.
• • Authorities said Franklin also provided information to Mark E. Lenowitz, who used it to make illegal trades for himself and a hedge fund he managed, DSJ International Resources.
• • Q Capital and DSJ were included in the civil charges, but Lyford Cay was not accused of wrongdoing.
• • UBS said in a statement that it "is assisting the authorities to the fullest extent possible in their investigation into the alleged actions of a single UBS employee," adding that the U.S. attorney "has described UBS as a victim of this alleged scheme."
• • Several other people allegedly learned of the illicit trading as the scheme progressed and tried to profit themselves.
• • Robert Babcock, a Bear Stearns broker who processed Franklin's trades, began monitoring and secretly mimicking many of those transactions, the SEC said. Two other Bear Stearns brokers did the same.
• • "The actions described in the complaint are clear violations of our policies and procedures," Bear Stearns spokesman Russell Sherman said Thursday. "We have and will continue to cooperate fully with the investigation."
• • When Guttenberg passed tips to another friend, David Tavdy, his trades were secretly mirrored by David Glass, who owned the day-trading firm where Tavdy did business, the SEC said. Glass and Tavdy later teamed up in their trading.
• • When a supervisor learned of the scheme, he and another man demanded $150,000 to keep quiet about it, according to the SEC. Tavdy and Glass acquiesced and eventually paid $30,000 in several installments, according to prosecutors.
• • Altogether, the UBS scheme netted at least $14 million in illicit profit for eight people and the three hedge funds, the SEC alleged.
• • Prosecutors also charged that a broker at Banc of America Securities, a unit of Bank of America Corp., allocated shares of initial public stock offerings to one of the hedge funds that Franklin managed for a payment of $9,500.
• • The alleged separate Morgan Stanley scheme involved a compliance lawyer whose job was to ensure that others followed securities laws.
• • The attorney, Randi E. Collotta, 30, of Bayport, N.Y., allegedly leaked news of upcoming mergers to her husband, Christopher K. Collotta, 34, who is also a lawyer, and to another man, Marc R. Jurman, 31, a broker in Florida.
• • The information said to have been provided by Randi Collotta was used to reap nearly $1 million in illicit stock trades, the SEC said.
• • In a statement, Morgan Stanley said it was "outraged that a former employee allegedly stole confidential information from the firm, and we have cooperated and will continue cooperating fully with the authorities."
• • Among the deals allegedly leaked by Collotta was UnitedHealth Group Inc.'s plan to acquire PacifiCare Health Systems Inc., announced in July 2005.
• • Although authorities said the schemes at UBS and Morgan Stanley were separate, there was an unusual connection.
• • Bear Stearns' Babcock and the two others named in the UBS case received information from Jurman about corporate mergers involving Morgan Stanley clients, the SEC said. As a result, these three were alleged to have taken part in both insider trading cases.
• • Authorities did not say how they uncovered the alleged wrongdoing in either case.
• • Boesky and Levine were two of Wall Street's most infamous figures from the 1980s. Both served prison time for insider-trading-related charges.

4. Related Stories

The California Public Employees' Retirement System, for example, has steered clear of CDOs in recent years, said Curtis Ishi, a senior investment officer at the pension fund.
••• "We need to understand the management and how they produce returns," Ishi said. CDOs, he said, require "quite a bit of analysis."
••• CDOs - "Collateralized Debt Obligations", or MORTGAGE POOLS are home mortgages used as collateral, and in the 80s created a $600million dollar fiasco, which sent many mortage heads to prison. "Getting a handle on CDOs is a complex challenge," reports the LA Times. MORE CDO MORTGAGE POOL STORY.

Collateralized debt obligations with a home mortgage, or CDOs, have been a hot product with many big investors for many years: says Troy Cory-Stubblefield, co-author of "BOA, The Tortfeasors". "In fact, in recent years Hedge Funds Collateralized by China U.S. Treasury Bonds have been used to help monitized the mortagage pools, and why not? It's their money. --SEE MORE ABOUT The Tortfeassors, AND MELVIN BELLI STORY.

TVI Magazine is not responsible for the content of external InterNet sites

More Articles • Converging News MARCH 2007 / TeleCom BuyOuts, Spinoffs and Asset Seizure Boom

Respectfully Submitted
Josie Cory
Publisher/Editor TVI Magazine
 TVI Magazine, tviNews.net, YES90, Your Easy Search, Associated Press, Reuters, BBC, LA Times, NY Times, VRA's D-Diaries, Industry Press Releases, They Said It and SmartSearch were used in compiling and ascertaining this Yes90 news report.
 ©1956-2007. Copyright. All rights reserved by: TVI Publications, VRA TelePlay Pictures, xingtv and Big Six Media Entertainments. Tel/Fax: 323 462.1099.

We Preserve The Moment

Return ˆ To Top  



Smart Daaf Boys - Products
Troy Cory Show / DVDs VRA TelePlay


We Preserve The Moment
Yes90 tviNews S90/ FOLLOW THE MONEY Hedge Funds Collateralized by China U.S. Treasury Bonds and Rogues sales ability at major firms have made big bucks -- and why not? It's their money," --says Troy Cory-Stubblefield, co-author of "BOA, The Tortfeasors" A SPRING ISSUE - MARCH - tviNews Events -106 - TVInews hedges its Spring 2007 Issure with CDO financing, YouTube, Movie Madness, Marathons, China # -- and the AirBus • / Feature Story / • 109SpringMadness03Hedge.htm / Smart90, lookradio, nbs100, tvimagazine, vratv, xingtv, Ddiaries, Soulfind, nbstubblefield, congming90, chinaexpo, vralogo, Look Radio, China Expo, Soul Find, s90tv, wifi90, dv90, nbs 100, Josie Cory, Publisher, Troy Cory, ePublisher, Troy Cory-Stubblefield / Kudoads, SinTrends, Sin Trends, Photo Image665, Google Video / YouTube Movies troy cory show duration:medium:free - 4 min - Television With No Borders

Legal Notices Copyright Information
How Do We Do Business?
Tel 323 462-1099
Return ˆ To Top

109 Education


"Follow The Money"




Google KudoAds



Smart Daaf Boys
Troy Cory Show

Hong Kong Triad /
"Jockey Club"
Follow The Money

SmartDaaf Boys

TVI Magazine
Back Issues -Available - Rare 50 Years of TeleCom History and TimeLines


Celebrity Scene News Events, Finance Executives Presented by TVI Magazine


Video On Demand VRA TelePlay Shows and WebCast


Smart Daaf Boys
Troy Cory Show

Using Soul Find RFID Chips to Rapidly IIdentify People.


Getting prepared for the 100th Year of Radio Frequencie & "Wireless Cemeteries"


Universal Office
Join the World of "WiFi , Land-lines and money transfers"


 Returnˆ To Top

120 PIXELS 3 columns



ˆ•••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• STRETCH••••Your••••v-Image