For the rest of the week we’ll be bringing you our massive list of the 55 Most Out of Control Stock Traders in 3 parts. Given all the financial panic and the fast approaching Mischief Night before Halloween, we figured now is as good a time as any to scare the crap out of you with these recounted tales of greed and woe. Without further ado here is today’s installment, Part 2, which shows off #’s 20 through 42 on our list of the top 55.
(Plus here’s [Part 1] in case you missed it)
20. David Bullen
According to David Bullen, banks are just a concept that everyone agrees to and that money has no real value. Until January of 2008 he was a highly paid options trader in foreign currencies. While jobs like these are supposed to be highly regulated, David along with three other colleagues were trading well over their limits, exposing the banks they invested with to massive losses. Then they entered false information into the computers at the bank in order to cover their tracks.
Who: David Bullen
Banked for: National Australia Bank
What happened: David Bullen and two others forged collateral lodgment forms allowing them to use clients’ shares, without their consent, as security for trading on other clients’ accounts as well as for their own personal options accounts.
Damage done: AU $360 million
Currently serving: 2.5 years
21 – 37. New York Group of 17
Seventeen (some reports claim only 15 were charged) individuals are accused of front running. According to Jacob Zamansky, an NYC-based lawyer representing individual investors, "In other words, to buy a stock at $20, these specialists would jump ahead of the customer and buy the stock for less, selling it to the customer for more. They were basically trading ahead of their customers’ orders, which is a cardinal sin down here on Wall Street."
Who: 17 Specialist Traders
Banked for: NY Stock Exchange
What happened: Accused of Front running and other trading violations.
Damage done: Damages in excess of $25 million
Currently serving / charged with: No sentence yet.
(Unfortunately, Stuart E. Winkler was successful in scrubbing his digital image from the internet, as far as my diligent search techniques could find, but hopefully these images of both "Stuart Little" and "Henry Winkler" will provide the same effect.)
A stockbroker who was serving up to 25 years in prison for plotting to kill a judge in Manhattan recently received an addition to his sentence for stock fraud, which is what initially landed him in jail to begin with. The stockbroker, Stuart E. Winkler, plead guilty to a count of enterprise corruption for defrauding investors while he worked as the chief financial officer or CFO for A. S. Golden & Company, a brokerage firm in New Jersey. In December of that year he was found guilty of plotting to kill Justice Leslie Crocker Snyder of State Supreme Court in Manhattan. The judge was unharmed, and Stuart E. Winkler went on to be sentenced by another Supreme Court Judge.
Who: Stuart E. Winkler
Trader for: A. S. Goldmen & Company
What happened: One count of enterprise corruption and one count for plotting to kill a Manhattan judge.
Damage done: More than $3 million dollars.
Currently serving: 25 years in prison.
39. Graham Houghton
Graham Houghton was a stockbroker who embezzled checks from Brewin Dolphin Security where he worked as a manager. Within a period of seven years he managed to get 129 different checks authorized by claiming to his bosses that they were intended for his clients. All of the theft was intended to pay his gambling debts, as he was addicted to internet gambling during his employment.
Who: Graham Houghton
Banked for: Brewin Dolphin Security.
What happened: An internet gambling addiction drove Graham Houghton to steal by embezzling checks from Brewin Dolphin Security.
Damage done: £370,000 or US $650,000
Currently serving: Two and a half years in prison.
40. Joyti De-Laurey
(Joyti De-Laurey, left, with accompanying photo of badass (disguised?) husband and money laundering accomplice, Anthony De-Laurey, right)
While working for a Goldman Sachs executive, Joyti De-Laurey committed fraud and theft to the tune of £4.3 million. She herself was not a stocktrader per se, but she managed to surreptitiously steal and forge several checks meant for New York based trading partners of her boss. So I guess in a way, that counts, right? She served a total of three years of out his 7 year sentence and is currently residing in an apartment bought using proceeds from the crime.
Who: Joyti De-Laurey
Worked for: Goldman Sachs
What happened: Accused of committing both fraud and theft to the tune of ¬£4.3 million dollars.
Damage done: £4.3 million
Currently serving: Only served 3 out of a 7 year sentence.
One of the sixteen white collar crooks caught and sentenced in 2007 in Australia by the Australian Securities and Investments Commission was Kym Andrew Sellers. He cost his stockbroker firm nearly AU $500,000 after they had to buy back shares he had illegally sold belonging to his clients in order to fund his gambling addiction. He has been jailed for two years with no chance of parole after pleading guilty to 16 consecutive counts of dishonest use of his position. He netted a loss of $343,044 that he illegally obtained through the sales of his clients’ shares. His crimes were carried out between May 2005 and October 2007 without detection.
Who: Kym Andrew Sellers
Worked for: Taylor Collison
What happened: Illegally sold his clients’ shares to pay for his gambling debts.
Damage done: AU $500,000
Currently serving: 2 years
Neville John Kakoschke was recently sentenced to two and a half years of prison on 27 different charges of forgery arising from an investigation by the ASIC. After this, an additional 25 charges of forgery were added, creating a non-parole period of twelve months to the sentence.
Who: Neville John Kakoschke
What happened: Neville John Kakoschke concealed forgery endangering AU $1,283,980 of clients money.
Damage done: No damages, but more than AU $1,283,980 had been put in danger.
Currently serving: Two and a half years in prison.