Hedge fund managers are wondering how they can possibly communicate now that a couple of Bear Stearns’ executives are on trial over in Brooklyn for their e-mail missives, and Galleon Group founder Raj Rajaratnam is facing a big indictment based on wiretapped phone calls.
The new Complex Frauds Unit of the F.B.I. apparently likes tapping phones, and that has everyone on Wall Street worried that someone’s listening in. Attorney Ross Intelisano told Bloomberg News one of his billion-dollar hedge fund clients wanted to hire someone to check their phones for bugs.
Mr. Rajaratnam, it seems, got the news too late. According to federal prosecutors, he had his employees fabricate fake e-mail chains, but he just wasn’t expecting the phones.
What’s a hedge fund manager to do?
“From now on, people are going to be meeting for lunch,” said Mr. Intelisano.