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Zamansky on SAC: Where There’s Smoke, There’s Fire

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    Jacob Zamansky on SAC

  • Duration 6:23
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-- him in jail for twenty years Charlie Gasparino has the exclusive details.

And special guest to break it all down.

Right and -- special guest in super lawyer Jake Komansky known for a long time he's very good at the social but I just want to hit a couple of headlines here that kind of advance the story of more Toma.

And die and in the government obviously trying to get him to cooperate and why -- -- still not cooperating.

-- sources tell me the fox does that was at SEC and more -- have what is known.

As a cooperation.

Agreement between the two sides that agreement allows -- to share documents.

And other information this is pretty key the agreement gives Steve Cohen and here's inches -- thing.

Additional insight into the government's case against -- if they choose to bring against them.

A case against them.

If more -- cooperates.

-- some heads ups and it's it's actually very important for his defense.

We should also point out that neither SEC nor mark -- -- -- took more -- was attorney Charlie still mobile denied the cooperation agreement.

Also I should point out what reported yesterday -- -- -- is footing the bill for martone -- was legal fees which is separate from this cooperation agreement.

We're gonna get into all that would take -- ask you are now Jake.

-- this force.

They're paying his legal fees.

They have a cooperation agreement which I think is pretty key here because the government is trying to flip this guy what do you make of it.

-- -- has just made the biggest traded his life he had a choice of cooperating with the feds getting off and maybe flipping one Stevie Cohen.

He chose Colin.

And here's the deal that they have.

-- is paying the legal fees which could be millions.

He gets a copy of the the government's playbook.

Which at a very cheap price.

They're gonna work and share information together so rather than -- one.

Flipping when Cohen he's decided to work with him.

And he's betting that it -- SEC's high price lawyers are going to be the -- as they usually do.

It's kind of a conflict of interest and paying off a guy that could cooperating -- -- They've taken a conflict of interest and made it into a common entry and -- that you're gonna say that we have the same interest in beating the government in saying this was an insider trading.

The government also whipped this Doctor Who told -- about the the trials so they did that is -- we should point -- that -- is all about -- -- trading of Wyeth and -- stock.

Essentially from inside information -- from a doctor about some drug trials.

And passing that information.

To Steve -- we know that he received the information we don't know how -- book characterize the information but we do know that Steve Cohen received this.

And treated upon it as well.

Yet SAC safe to -- seventy million dollars based on that information.

The key evidence is gonna be a twenty minute phone call between -- -- and -- and it wasn't taped.

And it's what they're gonna say -- during that phone call.

If Stevie Cohen can buy the cooperation and -- -- by the cooperation what he's doing it exactly then you're gonna -- different spin on that phone call.

If the feds had -- home in their pocket.

That phone call could implicate -- -- And possibly lead to the -- the firm.

-- question.

And portola is staring at -- -- years in jail.

What makes him think he's gonna -- this case.

If I'm more Toma I got two choices cooperate with the Fed's maybe get a small jail sentence.

Probably they wouldn't let -- more -- maybe a year or two in jail.

And if he does that -- never work again in this business.

If you works with -- -- and beats this rap.

He's probably back it SAC -- they set him up with his own firm so.

He's making the biggest trait of his life he's back on the street if he wins he's in the big house if he loses and as he cooperates down the road.

-- kind of -- them anyway because he saw the playbook the because they're sharing documents correct how would you like to be the giants getting the playbook you know from the from the saints last weekend you know what they're doing.

And that's a tremendous advantage if Cohen and his lawyers have that -- book.

I put my money when -- -- knowing what the SEC is gonna charge them with and they've got the key witness who could swing either way so -- -- is -- His twenty years in jail.

That this deal works out for him it's a big risk.

What do you think the chances are that they -- -- usually don't bring these cases -- -- -- -- by the you know what's the -- certainly -- we certainly do they ask -- what he thought was gonna happen at all the other folks who went down with with -- in that case it all -- so super confident until they were being sentenced to.

Ten years exactly the AS Gupta what they thought of his chances these are very tough cases.

When that doctor gets on the stand.

And says I told him exactly I got a 1101000 dollar payments a total what was going to -- and then the trade takes place just a day or two later.

It's gonna look pretty obvious to the jury what what happened plus.

Juries are sick of these insider trader guys they want to throw the book Adam.

They think that the game is -- at the little investor can't win and it's just you know big traders that get every -- -- the inside information you and I've been talking for years doing business.

Doing some of your -- you know I've been reporting that's and because when I was way back at the Wall Street Journal.

You see these corporate scandals and -- -- guys fall rise and fall now Steve -- clearly in the in it in these sort of sites here the government what is the chances that he gets indicted.

They've been they have to this guy for a long period of time Charlie you tell me whether he can make 2530%.

That a year.

But is he smarter than everybody else -- -- -- trading on inside information government -- government believes I can tell you this tokenism the government officials that I know.

They believe that he'd be that -- it's impossible.

To make that much money and never lose over a long period of time without trading on insider information.

I'm not saying it.

Let's be clear I -- the government believes that do you believe that this guy is the biggest issue -- Wall Street and it's there'd been so many rumors Charlie and so many SAC by traders and former -- -- this whole thing involved in this whole thing.

I think we're there's where there's smoke there's fire so I think there's something here blood -- -- to his credit.

Has cut a deal with more Tomo which may save him I think mark -- is going down I don't know about Cohen yet all right would have to leave it there guys -- of.

Thank you very much Charlie Gasparino he's gonna stay on this Charlie -- -- their lead of this insider trading case.

That looks as if they're going after quite clearly Stephen call.

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