Insider trader Raj Rajaratnam looks to be really going inside this time. Inside Federal prison that is. Raj was convicted on all 14 counts of securities fraud and conspiracy. This after failing to step up and accept a guilty plea that would have surely lessened the prison sentence that now is looming. Raj even spent over $40 million on his defense.
That is he spent $40 million while costing taxpayers several more millions for the investigation and trial. SO, at the end of the day what’s Raj to do and what does his family face? For me I look at how Raj can prepare for prison and that means helping his family prepare. But, how can you prepare somebody so grandiose and egocentric? Speaking from experience it can be done. Soon Raj will be living for probably at least 10 years in a large dormitory on the top bunk with guys from all walks of life. He will have to learn humility just to get along with these guys and the staff!
His family is another story. They now have the task of preparing to live without their husband and the father to three daughters. Sad that his greed has led him to this point and even sadder that he seems to not want to accept any responsibility. Maybe at sentencing we will see a sob story while he asks the Judge for mercy. Here is a prime example of Wall Street gone wild. Raj made plenty of money the legit way, he just pushed too far because he could. Or, at least he thought he could.
So, what’s next? I say once again more Wall Street fallout. Wall Street, be afraid, be very afraid but get ready. This insider knows there will be more soon. Change is possible but it takes hard work. Raj, if you are willing to do the work call me. I will set you straight and you will come home better and more focused than you are now while helping others for a change. Start NOW!
Filed under celebrities, Criminal Justice, Federal Prison, financial fraud, Goldman Sachs, Hedge Funds, insider trading, prison coaching, prison consultant, prison preparation, prison re entry, raj rajaratnum, Restoratice Justice, Wall Street
Chelsea Clinton, the new Mrs. Marc Mezvinsky, grew up with fame, power, money and privilege. Yet, we do not see her on a cheesy reality show, doing drugs, complaining about her life or exploiting people. Amazing! In fact, she must be a truly open minded and evolved woman. After all, she lived through her father’s presidency and all of the scandals. Now, she is the daughter in law of a man who served more than five years in Federal Prison for a myriad of financial crimes.
Ed Mezvinsky was a college basketball star, a lawyer, a congressman, a human rights advocate and a one-man financial fraud empire. He was released from prison in 2008 after pleading guilty to over 30 felonies. Now, he reportedly lives a quiet life and works with non-profit organizations and teaches. He claims to have changed his ways and accepts responsibility for his crimes. Has he changed? I have no idea, but this is about Chelsea.
Chelsea is an accomplished career woman who is a quiet Wall Street Force. She appears to have learned from her mother how to forgive and move on. Remember, Hilary Clinton is Secretary of State! A true peacemaker. So, how is it that Chelsea has overcome so much and others don’t? I can only guess. What I do know is that she, like her mother, is a SURVIVOR and with that comes true strength.
It’s all about choice. She chose to have empathy and dignity. She is an example that with hard work those who change can earn the support and love of others.
Congratulations Chelsea and thanks for leading by example.
Filed under celebrities, community service, Federal Prison, financial fraud, Goldman Sachs, prescription drugs, prison coaching, prison consultant, Prison Consulting, Prison conultants, prison re entry, reality tv
Why is the Goldman Sachs situation different than other fraud cases like that of Michael Milken?
The truth is that in complex cases like Milken and Goldman Sachs it is hard to understand what is actually illegal vs. what is borderline unethical. In the Milken case from the 1980’s, Milken wound up pleading guilty to six counts of securities and tax violations. That’s usually what the government settles for when things are too complicated. Think Al Capone!
Michael Milken was the king of “junk” bonds. Bonds that helped launch the LBO or leveraged buyout craze. Milken sold bonds in companies with high growth potential but often these companies became so debt laden they failed. But, others like Turner broadcasting soared and are still around today. Many felt that Milken and others also sold bonds that they knew were “junk” solely for profit. However, the ultimate convictions of minor securities and tax issues were what sent him to prison.
In the Goldman Sachs case it is déjà vu. No junk bonds but an equally confusing security called a mortgage backed or subprime mortgages. Today the Feds announced that they were looking into criminal charges against the firm and maybe even CEO Lloyd Blankfein. In this case Goldman allegedly sold equity in companies with too much debt or sold securities in companies they knew were junk. However, just like with Drexel and Milken, these packaged investments were very complex and Wall Street seemed fine as long as everyone was making money.
But, every pyramid has a top and such is the mess Goldman Sachs has left us with. Maybe even worse as the average person also has been hurt in the mortgage and real estate market collapse.
So, what’s different? This insider thinks not much. In over 20 years the SEC still has not learned much and the truth is may never. But, it is time for Goldman Sachs to be held accountable. The good news is that if some Goldman employees go to jail they will be able to see old friend Bernie Madoff again.