In January of 2009, the U.S. Securities and Exchange Commission charged Ramesh Chakrapani, the managing director of Blackstone Group's London office, with insider trading. Chakrapani is accused of leaking confidential details about the takeover of Albertson's supermarket chain in 2006, at which time he worked at Blackstone's New York mergers and acquisitions department.DealBook (NYT): Blackstone Executive Is Charged With Insider Trading (January 14, 2009)
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"This is the first time in the firm's 24-year history that any employee of the firm has been accused of any infringement of securities laws. Abuse of inside information goes against everything our firm stands for."—Blackstone Chairman & Chief Executive Officer Stephen SchwarzmanDealBook (NYT): Blackstone Executive Is Charged With Insider Trading (January 14, 2009)
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Fast Facts
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Age at time of charges
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Employer
Blackstone Group
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Worked at Blackstone's New York office from 2001-2008, then transferred to the London branchNew York Post: Steve's Spitting Mad (January 15, 2009)
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Accused of insider trading by the SEC
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When Blackstone learned of the allegations against Chakrapani, he was suspended by the companyDealBook (NYT): Blackstone Executive Is Charged With Insider Trading (January 14, 2009)
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Allegedly shared confidential information about the pending takeover of Alberton's supermarket chain in 2006
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Reportedly tipped off "a friend and fellow industry professional" through text messages and phone callsNational Post: U.S. SEC accuses Blackstone executive of insider trading (January 14, 2009)
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Those who Chakrapani tipped off made an estimated $3.6 million by trading shares in Albertson'sNational Post: U.S. SEC accuses Blackstone executive of insider trading (January 14, 2009)
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