The New York Headquartered Firm Essay

1551 Words Nov 1st, 2014 null Page
“Anyway, no drug, not even alcohol, causes the fundamental ills of society. If we’re looking for the source of our troubles, we shouldn’t test people for drugs, we should test them for stupidity, ignorance, greed and love of power” (O’Rourke “Greed Quotes”). The Galleon Group is precisely a story emanating a few members lust for power that was consumed by the essence of greed. Founded by Raj Rajaratnam and fellow partners in 1997, the Galleon Group quickly emerged to substantial wealth and incredible success as one of the largest hedge fund management firms in the world. Managing over seven – billion dollars in a series of funds that specialized in the healthcare and technology industries, the New York headquartered firm was on the fast track to stardom. Unfortunately, the firm became the center of a catastrophic insider trading scandal in 2009 which ultimately saw the demise of the firm as well as the apprehension of several avaricious individuals. The Securities Exchange Act of 1934 oversees the regulation and registration of securities exchanges, brokers, dealers, and national securities associations. Furthermore, the act authorizes the Securities and Exchange Commission (SEC) to engage in market inspection to hinder practices such as fraud, market manipulation and misrepresentation (Miller and Cross, Legal Environment of Business). In addition, Section 10(b) and SEC Rule 10b – 5 concerns the area most associated with this particular case known as insider…

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