That’s the worst part about having a silly nickname. It looks and sounds HORRIBLE when you get busted. In London, there’s a money manager nicknamed “beano,” who apparently absconded with client cash. Embarrassing. And the man at the centre of the new insider trading bust was “Octopussy”
Bloomberg: There is no place at our firm for individuals who violate the securities laws,” Schottenfeld’s chairman, Richard Schottenfeld, said in an April 2008 statement.
Zvi Goffer, a Schottenfeld trader from January 2007 through December 2007, is at the centre of the government’s latest charges in a case that has so far ensnared six firms and at least 20 people allegedly involved in insider trading. He was known within the ring as “the Octopussy,” a reference to the 1983 James Bond film starring Roger Moore, “because he had arms in so many sources of information,” according to a U.S. Securities and Exchange Commission complaint.
Schottenfeld is a “prop shop,” or proprietary-trading firm, where about 50 traders buy and sell stocks daily using company money. They keep a portion of any profits they make. Unlike a hedge fund, there is no unified strategy or investment committee; each trader makes his own decisions.
Also, we missed this amusing detail, yesterday, in the complaint.
NYPost: According to a complaint filed by the SEC, Goffer, 32, gave one of his tipees a disposable phone so they could share information about Bain Capital‘s impending acquisition of 3Com. After the deal was announced, he pulled out the SIM card, bit it, broke the phone in half and disposed of the two pieces separately.