It turns out that as part of its insider trading probe, the government intercepted the calls of 97 different money managers as part of its wiretap of two Primary Global Research phone lines.
“The government identified 15 of those as targets of its investigation in 2009,” the FT reported.
The court filings in which these figures were revealed, “also show that during the government’s investigation of Mr Rajaratnam, it received court approval to record conversations in 2008 and 2009 involving Dipak Patel,” a portfolio manager at SAC Capital.
At the beginning of the year we reported that Patel, who lead a team of five that invested in telecom and tech stocks for both SAC and its Sigma subsidiary in New York, had left the firm.
Patel has not been accused of any wrongdoing.
Two other equity investment staffers who worked under Patel in the Sigma fund, left SAC at the same time as him; Max Jellinek and George Minett were analysts on Patel’s team.
We were told in January that Patel, who worked at SAC since 2002, was winding down his portfolio and was transitioning out of the firm soon after.
Sigma Capital’s tech portfolio, in particular one of the firm’s portfolio managers, Michael Steinberg, were under scrutiny because of the insider trading investigation by the government.