Here comes the Flood. Rumor scum be warned

Discussion in 'Wall St. News' started by stock777, Apr 24, 2008.

  1. Ever wonder how those type-A personalities make all that money trading prop? Smart? Hard Working?

    lol, hell no. Read on son, you'll learn something. Tip o' the iceberg, I guarantee it. And I'm never wrong.

    NEW YORK, April 24 (Reuters) - U.S. securities regulators said on Thursday they settled with a Wall Street trader accused of intentionally spreading false rumors about the planned acquisition of Alliance Data Systems Corp (ADS.N: Quote, Profile, Research) while selling the stock short.

    Paul Berliner, 32, formerly associated with Schottenfeld Group LLC, agreed to settle the civil case without admitting or denying the allegations, the U.S. Securities and Exchange Commission said in a statement.

    The SEC said Berliner would disgorge $26,129 in profits and interest, and pay a maximum penalty of $130,000. He is also barred from association with any broker or dealer.

    Blackstone Group (BX.N: Quote, Profile, Research) agreed on May 17, 2007, to buy Alliance for $81.75 a share, but the deal collapsed this month.

    Berliner, according to the SEC complaint filed in the U.S. District Court in Manhattan, used instant messages to 31 traders at brokerage firms and hedge funds to spread a rumor on Nov. 29 that ADS's board of directors was meeting to consider a revised proposal from Blackstone to acquire their company at $70 a share.

    The rumor spread quickly as "the media and certain subscriber-based news services quickly picked up the 'story' and further disseminated it throughout the marketplace," according to the complaint.

    The result was that ADS's share price plummeted to $63.65 a piece from $77 and Berliner profited from the rumor even as he was spreading it by short-selling ADS stock, the complaint said.

    Calls to Schottenfeld Group seeking a comment were not immediately returned. Berliner's lawyer was not immediately available for comment. (Reporting by Martha Graybow, Leslie Gevirtz; Editing by Maureen Bavdek)
  2. Div_Arb


    You gotta have a plan, man...
  3. Millions of ways to make money in the market. I'd do it that way too if I had the resources.
  4. I hear ya. But if it was up to me, part of the plan would be what reading material to bring to Federal Prison for your 10 year stretch.

    You'll need a trade (pun intended) when you get out.
  5. You gots too make tha paper anyway possible in this game boy.
  6. What an idiot
  7. subban


    What about prosecuting all the aholes he instant messaged..they all tried to collude on perceived inside info.
  8. he did nothing wrong
  9. Hey, it worked beautifully with Bear Stearns and nobody got caught. Can't blame a scumbag for taking a shot. :p
  10. They have the resources to go screw with one moke at a hedge fund for one rumor but do nothing about the BSC put buyers, the incessant bullshit Gasparino ABK rumoring or tell us who bot all those puts before 9/11. Apparently they pick and chose who they feel like going after and stay away from the big names. What fucking joke, these guys are either complete clowns or the fix is in.
    #10     Apr 24, 2008