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Former Blackstone Exec Accused of Insider Trading

By Ethisphere.com

“I am both saddened and outraged,” Steve Schwarzman wrote in a message to Blackstone employees on Tuesday. “The SEC has brought a civil complaint today against Ramesh Chakrapani in our Corporate Advisory Services Group.”

Schwarzman, CEO of asset management firm Blackstone Group, was referring to charges that the SEC brought against 33-year-old Managing Director Ramesh Chakrapani who is based out of the company’s London offices. Chakrapani is accused of handing out privileged information regarding the 2006 takeover of Albertson’s, a national supermarket retailer that hired Blackstone’s M&A team to oversee the transaction.

Chakrapani, who was a vice president at the time and worked on the Albertson’s takeover, allegedly sent at least 20 calls and 18 text messages to a friend. The friend, an unnamed financial analyst, used the info to profit to the tune of $3.6 million.

Chakrapani has been suspended, according to Schwarzman’s company-wide letter. Now he’s awaiting trial set for next Tuesday, according to CNN. Bail is set at $300,000, but he has some room to move around as his travel was restricted to New York City and … California.

Full post as published by Ethisphere Blog - Good. Smart. Business. Profit. on January 15, 2009 (boomark / email).