It’s not easy to beat the market - part III
“Samir Barai, a hedge fund manager who graduated from Harvard in 1999, pleaded guilty to to one count of conspiracy to commit securities fraud and wire fraud, one count of securities fraud, one count of wire fraud, and one count of obstruction of justice.
Barai is the second Harvard MBA to plead guilty in the biggest insider trading case since the 1980s when junk bond king Michael Milken was indicted on 98 counts of racketeering and securities fraud. Adam Smith, a former 1999 classmate and ex-Morgan Stanley banker and a former employee of hedge fund Galleon Group, pleaded guilty earlier this year.
(…) Barai, the founder of Barai Capital Management LP, can face both jail time and major fines. The conspiracy count carries a maximum sentence of five years in prison, the securities fraud count carries a maximum sentence of 20 years in prison, the wire fraud count carries a maximum sentence of 20 years in prison, and the obstruction count carries a maximum sentence of 20 years in prison. He also faces millions of dollars in fines and disgorgement at sentencing in August.”
(Via Harvard MBA Pleads Guilty to Insider Trading | Poets & Quants.)
