Jason M. Breslow, PBS Frontline
It’s phone calls like the one that Turney Duff took early in his career at the Galleon Group that authorities point to as what’s wrong with the hedge fund industry.
The voice on the other end of the line asked for Raj Rajaratnam, the CEO of the hedge fund. Duff explained that Rajaratnam was unavailable.
Then suddenly without warning, the voice whispered that investment analysts at the Jeffries Group were going to upgrade Amazon in six minutes.
In the below scene from tomorrow night’s FRONTLINE investigation, To Catch a Trader, Duff explained the choice he faced.
“If I don’t buy Amazon and the stock’s upgraded and the stock goes up, they’re going to find out,” he said. “But if I do it, isn’t this illegal?”