Friday, October 16, 2009

Does anyone else remember that Rick Sherlund went to Galleon Group after Leaving Goldman Sachs?




October 16

So, I was wondering how long it would take Rick Sherlund to leave Galleon Group.

To be honest, I had forgotten all about Rick until today, when the insider trading scandal at Galleon broke.

http://www.bloomberg.com/apps/news?pid=20601087&sid=aQFoJVX3k8Ho

The founder of Galleon, Raj Rajaratnam, was charged today with insider trading, in a really juicy case. His co-conspirators included a senior person at Intel Capital and McKinsey – of all places. Based on the complaint, these people traded on inside information in a "you scratch my back, I'll scratch your back" scheme - which was working really well until the FBI got tipped, and began recording the phone calls of various participants.

Like I said, really juicy.

In any event, Sherlund left Goldman Sachs to join Galleon Group in March of 2007.

http://files.wallstreetfolly.com/wordpress/2007/03/goldmans-rick-sherlund-lands-at-the-galleon-group/

Interestingly, you will note from his LinkedIn profile, that Galleon Group is not mentioned.

http://www.linkedin.com/pub/rick-sherlund/5/121/750

This profile indicates that Rick formed Ketchum Capital group in 2009, and has been there less than a year. When I originally sat down to write this entry, my thought was that Sherlund was still at Galleon, though he would announce his departure from Galleon before the weekend was over in order to avoid any of the stench.

However, it looks like he didn’t like what was going on at Galleon, and left before this scandal broke.

Based on the story published by Bloomberg, it sure sounds like a lot of people at Galleon knew what was going on.

I wonder why it took Sherlund 2 years to figure it out?
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2 comments:

  1. AnonymousOctober 19, 2009 at 12:38 AM

    Well gosh, one would think that the US Government would call upon Mr. Sherlund to testify in the Galleon case, given his level within the organization...

    ReplyDelete
  2. Sophistry BusterOctober 19, 2009 at 10:48 AM

    Yes - you would think that would be the case. It is also VERY CLEAR to me that this is only the very tip of the iceberg. One story suggested that the FBI busted Raj on Friday because he had purchased to ticket to travel to London on Saturday. I'd guess that the FBI has a LOT more they can utilize, and their interviews will lead to several more "singing canaries".

    This story has only begun.

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