The following remarks were prepared for delivery by FBI New York Special Agent in Charge April Brooks at a November 4, 2013 press conference concerning SAC Capital’s plea deal in connection with an insider trading investigation.
In 2006, with new information about rife and unbridled insider trading at hedge funds, the FBI went to work. After examining trading anomalies, poring over documents, conducting surveillances, and making the first approach to a key target, that individual began cooperating with the government.
What started with a key cooperator led to thousands of hours of relentless investigative work by a team of FBI agents uncovering an extensive network trafficking in inside information throughout the hedge fund industry that has been chronicled by many of you. The result, in part, brought today’s plea and is the latest step in the largest insider trading investigation in history.
None of this would have been possible without dedicated prosecutors willing to bring charges here in the Southern District led by U.S. Attorney Preet Bharara and Deputy U.S. Attorney Richard Zabel. I would like to recognize Assistant U.S. Attorneys Arlo Devlin-Brown, Antonia Apps, John Zach, and their chiefs, Marc Berger and Anjan Sahni.
I would also like to recognize the team from my office: FBI Special Agents Matthew Callahan, James Hinkle, Matthew Thoresen, B.J. Kang, and David Makol.
I also want to emphasize that today’s announcement has no effect on any individual awaiting trial. Those defendants are presumed innocent until proven otherwise.
What SAC Capital’s plea demonstrates is that cheating and breaking the law were not only permitted but allowed to persist.
SAC focused on hiring the best talent, talent who was equipped with extensive networks to circumvent traditional lines of communication. Talent who would be prepared to get confidential information to fuel their ilict trades.
SAC didn’t just break the law, their illegal activity resulted in “insider trading that was substantial, pervasive, and on a scale without known precedent” according the July indictment. It was nothing short of institutional failure.
In today’s agreement, SAC Capital will plead guilty to all five counts in the indictment. The result is $1.8 billion in fines and forfeiture, the largest penalty in an insider trading case ever. Most importantly, SAC Capital will terminate operations as an investment advisor and will be required to have real, genuine compliance overseen by an independent expert. In layman’s terms, SAC will no longer be able to invest anyone’s money but their own.
As today’s plea illustrates, SAC institutionalized their practices by cultivating a culture of corporate corruption. To those on the street who venerate Michael Douglas’ character Gordan Ghekko understand this: principles are just as important as your profit. The problem of insider trading is real and for companies that willfully turn a blind eye—be on notice—how your employees make money is just as important as how much they make.
Today is not the end. The FBI’s investigation into insider trading on Wall Street, on Main Street, in hedge funds, at expert networking firms, and anywhere else continues. We will relentlessly pursue this anticompetitive criminal behavior until every portfolio manager, every trading desk, and every hedge fund owner stops trading on insider information.
Showing posts with label remarks. Show all posts
Showing posts with label remarks. Show all posts
Tuesday, November 5, 2013
Wednesday, September 18, 2013
Remarks as Prepared for Delivery by Assistant Director in Charge Valerie Parlave on the Washington Navy Yard Shootings
The following remarks were prepared for delivery by FBI Washington Assistant Director in Charge Valerie Parlave concerning the September 16, 2013 shootings at the Navy Yard in Washington, D.C.
Good afternoon.
As we have progressed past the initial 24 hours after yesterday’s shootings at the Washington Navy Yard, we wanted to take a moment to provide an update on the investigation. I am joined today by Chief Lanier of MPD; Michael Monroe, Special Agent in Charge of NCIS; U.S. Attorney Ron Machen; Chief Chambers of the U.S. Park Police; Carl Vasilko of ATF; and Chief Ellerbe of D.C. Fire and EMS.
I would first like to commend and thank the agencies you see here with me today, as well as many others. We continue to actively work together, and the partnerships and cooperation among us are vital to the progress of this investigation.
As briefed last night, we believe at this time that the deceased shooter, Aaron Alexis, acted alone. As such, with no other suspects at large, the investigation has moved into a phase of evidence recovery and information gathering. We have 13 confirmed fatalities, to include the shooter, all of whom have been positively identified.
Our Evidence Response Teams remain at the Navy Yard and continue to process the scenes. As I mentioned last night, this is a methodical and time-intensive process that includes bullet trajectory analysis and crime scene mapping, and, with the assistance of Evidence Response personnel from our Baltimore and Richmond Field Offices, we will remain there for as long as necessary to carefully process each shooting site.
In regards to the weapons used by Mr. Alexis, there has been a lot of information circulating in the media over the past day. Once again, we caution against obtaining information from unofficial sources, and we ask that all inquiries be directed to the FBI.
At this time, we believe that Mr. Alexis entered Building 197 at the Navy Yard with a shotgun. We do not have any information at this time that he had an AR-15 in his possession. We also believe Mr. Alexis may have gained access to a handgun once inside the facility and after he began shooting. As previously mentioned, Mr. Alexis had legitimate access to the Navy Yard as a result of his work as a contractor, and he utilized a valid pass to gain entry to the building.
We also continue to conduct all other necessary investigation to learn about the activities and contacts of Mr. Alexis. We continue to conduct interviews, exploit digital media, and run down every lead we can to piece together his recent movements and to determine the motive behind this attack. We can say that we have determined that Mr. Alexis arrived in the Washington, D.C. area on or about August 25th, and he has stayed at local hotels in the area since that time.
Most recently, he is known to have stayed at a Residence Inn in Southwest Washington, D.C., starting on September 7th. We ask anyone who may have had contact with him during this time, or previously, to contact the FBI with that information.
As a result of the public’s cooperation thus far, we have received hundreds of tips which we continue to follow up. This investigative activity is not only taking place here in Washington, D.C., but in various cities across the country where Mr. Alexis has spent time.
We are greatly appreciative of the public’s cooperation, and we again ask anyone who may have knowledge of Mr. Alexis to report that information to the FBI. No piece of information is too small.
We also continue to put forth other FBI assets towards this investigation. Our Office of Victim Assistance is working together with MPD and the Department of Defense to provide resources and support to victims and next of kin. We also have personnel from our Behavioral Analysis Unit assisting in the investigation as we try to determine the motivation behind the shootings.
We continue to look into Mr. Alexis’ past, including his medical and criminal histories. But, because that part of the investigation is still ongoing, we will not comment further on it at this time.
Once again, I’d like to thank our partner agencies and all those who participated in yesterday’s response. I’d also like to thank all of the individuals who work at the Navy Yard for their cooperation and patience during a long and trying day.
And, I want to again extend my thanks to the public for their continued support. Please continue to report any and all information regarding Mr. Alexis by calling 1-800-CALL-FBI—that is, 1-800-225-5324.
Thank you. I’d now like to invite Chief Lanier to say a few words.
The FBI would also like to direct individuals to support-related services.
The center is available for those with deceased family members or for injured victims. Available resources include employee benefits, crime victims' compensation, and counseling.
Family Support Center
Supporting and Guiding Families Affected by the Navy Yard Tragedy
Beginning Tuesday, September 17, 2013, from 11 a.m. to 7 p.m.
Location:
Joint Base Warfighter and Family Support Center
(Joint Base Anacostia-Bolling Airforce Base)
1118 Brookley Avenue, Maryland
Phone: 202-433-6151
Good afternoon.
As we have progressed past the initial 24 hours after yesterday’s shootings at the Washington Navy Yard, we wanted to take a moment to provide an update on the investigation. I am joined today by Chief Lanier of MPD; Michael Monroe, Special Agent in Charge of NCIS; U.S. Attorney Ron Machen; Chief Chambers of the U.S. Park Police; Carl Vasilko of ATF; and Chief Ellerbe of D.C. Fire and EMS.
I would first like to commend and thank the agencies you see here with me today, as well as many others. We continue to actively work together, and the partnerships and cooperation among us are vital to the progress of this investigation.
As briefed last night, we believe at this time that the deceased shooter, Aaron Alexis, acted alone. As such, with no other suspects at large, the investigation has moved into a phase of evidence recovery and information gathering. We have 13 confirmed fatalities, to include the shooter, all of whom have been positively identified.
Our Evidence Response Teams remain at the Navy Yard and continue to process the scenes. As I mentioned last night, this is a methodical and time-intensive process that includes bullet trajectory analysis and crime scene mapping, and, with the assistance of Evidence Response personnel from our Baltimore and Richmond Field Offices, we will remain there for as long as necessary to carefully process each shooting site.
In regards to the weapons used by Mr. Alexis, there has been a lot of information circulating in the media over the past day. Once again, we caution against obtaining information from unofficial sources, and we ask that all inquiries be directed to the FBI.
At this time, we believe that Mr. Alexis entered Building 197 at the Navy Yard with a shotgun. We do not have any information at this time that he had an AR-15 in his possession. We also believe Mr. Alexis may have gained access to a handgun once inside the facility and after he began shooting. As previously mentioned, Mr. Alexis had legitimate access to the Navy Yard as a result of his work as a contractor, and he utilized a valid pass to gain entry to the building.
We also continue to conduct all other necessary investigation to learn about the activities and contacts of Mr. Alexis. We continue to conduct interviews, exploit digital media, and run down every lead we can to piece together his recent movements and to determine the motive behind this attack. We can say that we have determined that Mr. Alexis arrived in the Washington, D.C. area on or about August 25th, and he has stayed at local hotels in the area since that time.
Most recently, he is known to have stayed at a Residence Inn in Southwest Washington, D.C., starting on September 7th. We ask anyone who may have had contact with him during this time, or previously, to contact the FBI with that information.
As a result of the public’s cooperation thus far, we have received hundreds of tips which we continue to follow up. This investigative activity is not only taking place here in Washington, D.C., but in various cities across the country where Mr. Alexis has spent time.
We are greatly appreciative of the public’s cooperation, and we again ask anyone who may have knowledge of Mr. Alexis to report that information to the FBI. No piece of information is too small.
We also continue to put forth other FBI assets towards this investigation. Our Office of Victim Assistance is working together with MPD and the Department of Defense to provide resources and support to victims and next of kin. We also have personnel from our Behavioral Analysis Unit assisting in the investigation as we try to determine the motivation behind the shootings.
We continue to look into Mr. Alexis’ past, including his medical and criminal histories. But, because that part of the investigation is still ongoing, we will not comment further on it at this time.
Once again, I’d like to thank our partner agencies and all those who participated in yesterday’s response. I’d also like to thank all of the individuals who work at the Navy Yard for their cooperation and patience during a long and trying day.
And, I want to again extend my thanks to the public for their continued support. Please continue to report any and all information regarding Mr. Alexis by calling 1-800-CALL-FBI—that is, 1-800-225-5324.
Thank you. I’d now like to invite Chief Lanier to say a few words.
The FBI would also like to direct individuals to support-related services.
The center is available for those with deceased family members or for injured victims. Available resources include employee benefits, crime victims' compensation, and counseling.
Family Support Center
Supporting and Guiding Families Affected by the Navy Yard Tragedy
Beginning Tuesday, September 17, 2013, from 11 a.m. to 7 p.m.
Location:
Joint Base Warfighter and Family Support Center
(Joint Base Anacostia-Bolling Airforce Base)
1118 Brookley Avenue, Maryland
Phone: 202-433-6151
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