UBS, Blackstone Advisers Fed Insider Ring, U.S. Announces

Article by Brian Winters









The claimed insider-trading network is the largest exposed by US authorities since previous UBS and Morgan Stanley workers were charged in 2007 of feeding tips on stock research and acquisitions to a ring of hedge funds. Claims exposed today expand on an insider-trading scheme claimed last month against Chakrapani associated with the 2006 bid for Albertsons, the Boise, Idaho-based greengrocer chain. The rings claimed gains include trading profits and losses evaded. Stephanou, 34, a voter of Cyprus who lives in London, was arrested at Newark Freedom Global airfield in New Jersey on Dec twenty-seven and remains in custody, prosecutors claimed.

Chakrapanis barrister Michael Sommer denied the accusations in an interview today.

Contorinis, 44, and Michael Koulouroudis, 58, who also purportedly received the tips, were held today. Koulouroudis was released on 0,000 bail, whilst Contorinis was ordered held on million bail at a hearing today. He refused to intricate, noting that the inquiry continues. Prosecutors won cooperation from a UBS Wall St banker who tipped the other accused, helper US Attorney Reed Brodsky announced at a hearing today. Brodsky didnt name the banker, who he revealed has been charged. The governing body has a particularly powerful case, Brodsky claimed in court. Stephanou was among UBS advisers allotted to help Cerberus Capital Management LP prepare bids with a bunch of stockholders for Albertsons in 2005 and 2006, the SEC related. He tipped at least 3 folks to developments in the deal, including pal and ex-colleague Contorinis, the agency said. The couple had both worked as researchers at the New York office of Credit Suisse First Boston in 1998 and 1999, the agency said. Contorinis, a resident of Fort Myers, Florida, bought million in Albertsons shares for the Jefferies hedge fund, the SEC related. Accused in the case collectively gained or evaded losing .7 million on trades tied to the deal, it declared. Stephanou also leaked private info about the Carlyle Groups plans in 2006 to buy ElkCorp, the Dallas-based maker of roofing and building products, according to the SECs complaint. Building Materials Co of America purchased ElkCorp for approximately .1 bln in 2007. Chakrapani, a London resident, was on a bunch of Blackstone advisers employed to help State Health Backers guage strategic options, including a buyout, in 2006, according to the SEC. He leaked info about a potential takeover to Stephanou, who passed it to one other person, prosecutors and the agency expounded. The buddy, along with relations, reaped .6 million, the SEC announced in a related legal action looking for vague fines.

He claimed Contorinis left the company a year back.



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Brian Winters works at http://www.hedgefundhog.com the net’s trusted portal for hedge fund