How Ethics Fades Essay Example | Topics and Well Written Essays - 1500 words

How Ethics Fades - Essay ExampleTo control such activities, the Securities and Exchange Commission (S.E.C.) was established to chuck into completion rules and regulations protecting the government, investors and public alike (www.sec.gov). The story of Raj Rajaratnam is action-packed non-fiction that brings audiences to a glimpse of how the S.E.C. functions. Rajaratnam is the founder of Galleon, a multi-billion evade fund, who hired employees illegally, who were working in potential companies to get information from them. Among these people who played important roles in the game of Rajaratnam was Anil Kumar, a senior executive of McKinsey, a consulting firm which wanted to get Rajaratnam as a client. Meeting at a charity event in 2003, the two being agent classmates made a moot closely how Kumar was to be paid by the billionaire as an adviser. Kumar was not the first gear nor the only one of Rajaratnams informer, though. Names like Adam Smith, Krish Panu, Kris Chellam and Rajiv Goel were in the Galleons compass points list, all Indian-born businessmen with prominent positions in large companies. Paying them a good deal of money, their services were at Rajaratnams command, making him escape the loss of great amounts of money or the remove of it. When his investments are at a risk, Rajaratnam was informed and he sold his shares before a company closes down. Likewise, he is advised on what to buy at very low prices in accordance with the information given(p) to him by his advisers. Whatever occurs, he is always on the win with his dealings (Packer). Insider trading is the name of Rajaratnams game, getting information from insiders for his benefit, making sure he always makes money in his investments and he may not be the only one who is doing the practice but his large company just could not escape the suspicious eyes of the S.E.C. Formerly, S.E.C. was looking into Sedna Capital, a hedge fund run by Rengan Rajaratnam, the billionaires brother who was tip ped off engaging in insider trading. An anonymous letter sent in 2007 about Galleon strengthened S.E.C. officials suspicions and their investigations begun.