Junior RBC Analyst Charged With Insider Trading

Did anyone see this story that just came out? Stud first-year out of NYU charged with insider trading. The idiot bought calls on EFI right before their acquisition by Siris Capital. What a fucking moron, only made $100K as well.

Comments (82)

Aug 12, 2019

God damn that was stupid...

    • 1
Aug 12, 2019

Dude did it with his personal account too....
surprised pikachu

    • 2
Aug 12, 2019

yeah, great risk-reward scenario there. get banned from finance for a lifetime for less than one year's comp.

    • 5
Aug 12, 2019

Is there any chance that he has some great family lawyers and gets off with a slap on the wrist, or is that unprecedented for even the elite in wall st?

Aug 12, 2019

He may get off jail time but he's still never working in any reputable finance firm again. They may expunge his record in time, but the internet notoriety will live on.

    • 1
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Aug 12, 2019

Also from the article:

:

In a November 2017 interview with the Stern School website, Tsai was asked what advice he would give to first-year students.
"Hold on to your values," he answered, according to the website. "I think the biggest thing is that you learn so many things in school. That's a beautiful part of the school, but it's to figure out what you believe in."

    • 22
Aug 12, 2019

Classic NYU "values"where people give each other study materials with incorrect answers to sabotage their grades. Source: My NYU tour guide (!!!), even if only directionally true, a huge red flag and I ran as far and as fast away from that school as possible

    • 8
Aug 12, 2019

Jesus that's fucked

Most Helpful
Aug 12, 2019

https://www.stern.nyu.edu/programs-admissions/unde...
What is it like being the Student Council President, and what do you hope to accomplish?

  • I think it's a role that is bigger than advertised. When you see people around, when people look at you, they think that is what NYU Stern is. And what I've realized is - and what I've been told as well - is that even when I walk around as Bill Tsai instead of NYU Stern President, I am still NYU Stern President. Like whatever I do, the title follows. And you have to be very aware of that a spotlight is on you, and conduct yourself accordingly.

LOL, and yikes..how long before this student interview profile mysteriously disappears from Stern's website

    • 15
Aug 12, 2019

The complaint is pure comedy. Did he hope the SEC wouldn't notice that an inactive account happened to buy $30k of calls that expiring a few days after the deal announcement??

I'm totally astonished by his sheer idiocy

Funniest
Aug 12, 2019

HUGE haul for the SEC. Congrats everyone, we got him

    • 52
Aug 12, 2019

The trader is an idiot, he had access to non-public information and wasted his time to make off money when other people didn't know.

Aug 12, 2019

For a profit of less than his first-year salary.

Aug 13, 2019

Easy now, he was an investment banker, not a trader ;)

Did you know that JRR Tolkien stands for Jolkien Rolkien Rolkien Tolkien?

    • 1
Aug 13, 2019

isnt s&t paid less base/bonus?

What concert costs 45 cents? 50 Cent feat. Nickelback.

    • 3
Aug 16, 2019

He actually worked in Corporate Banking. Just another of one of Tsai Guy's schemes.

Aug 12, 2019

What a dumbass, wow. Didn't even try to hide it.

    • 1
Aug 12, 2019

Poor kid. No one knows what he was thinking, but my guess is that he convinced himself that the information he was trading on wasn't material non public. I don't know how else you explain the fact that he doesn't appear to have even tried to cover his tracks.

Aug 12, 2019

He didn't report the account to RBC. This could seem like covering one's tracks if you're a moron

Aug 12, 2019

It sounds like he 100% knew what he was doing. Perhaps the student president of Stern and fresh IB analyst job got to his head? Pretty easy to think you're above the law after being on cloud 9 that early in life.

Aug 13, 2019

Here's another theory, since we all seem to be okay with armchair psychoanalyzing this guy: With his resume and ambition he believed that he was entitled to something far bigger and better than an analyst role at RBC.* So when the universe didn't deliver him what in his estimation should have been his, he just took it.

*Note: I work with RBC a lot and think it's a great firm populated by very competent and honest bankers.

Aug 12, 2019

Not even $100k. That's a short term capital gain, so after taxes he probably netted about $70k. Or would have.

Aug 12, 2019

just like my buddy at the gym would say, 'short term gain for long term pain'.

    • 4
Aug 12, 2019

Wouldn't he have passed the SIE by this point? He can't say he didn't know ...

Aug 12, 2019

that's pretty dumb, the profit probably less than his salary

Aug 13, 2019

Blue horseshoe loves Anacott Steel

Maybe I led you to believe that this was a God given gift and not something I worked for, every single day of my life.

    • 9
Aug 13, 2019

+SB xD

Aug 13, 2019

fuck me dead

What concert costs 45 cents? 50 Cent feat. Nickelback.

    • 1
Aug 16, 2019

Pure gold Willy

Aug 16, 2019

Marky, Ricky, Danny, Terry, Mikey, Davey, Timmy, Tommy, Joey, Robby, Johnny and Brian.

And Willy

Willy? Will!

Maybe I led you to believe that this was a God given gift and not something I worked for, every single day of my life.

Aug 13, 2019

Maybe it's the NYU, but for some reason I envision this kid crying as he confesses in the SEC interrogation room.

Aug 13, 2019

Billy Tsai the insider trading guy!

Maybe I led you to believe that this was a God given gift and not something I worked for, every single day of my life.

    • 7
Aug 13, 2019

Bill Tsai the Inside Guy, Bill! Bill! Bill! Bill!

    • 24
Aug 13, 2019

I'm dead. This is the best.

    • 1
Aug 13, 2019

from a reliable source:

WSO's COO (Chief Operating Orangutan) | My Linkedin

    • 14
Aug 13, 2019

Maybe Because HK airport cancelled all flights

    • 2
Aug 14, 2019

"You know the Fed's listening, n***a what money?" - DJ Khaled

Maybe I led you to believe that this was a God given gift and not something I worked for, every single day of my life.

    • 6
Aug 15, 2019

Bill Tsai will not be doing any more Schemin'

Aug 15, 2019

That's the GOAT Lil Wayne*, on a Khaled track ;)
DJ Khaled could never come up with a line like that

    • 3
Aug 16, 2019

That's Lil Wayne...

Aug 13, 2019

Money never sleeps, pal. Just made $98,750 on EFI. It's been wired to you. Play with it. You've done good, but you gotta keep doing good. I've showed you how the game works. Now School's out.

Oh shit wire me that money back I need to make bail

What concert costs 45 cents? 50 Cent feat. Nickelback.

    • 5
Aug 13, 2019

Money never sleeps, pal. Just made
3,074,581 in Taiwan Dollars
https://www.google.com/search?rlz=1C1GCEA_en&ei=Dj... . It's been wired to you. Play with it. You've done good, but you gotta keep doing good. I've showed you how the game works. Now School's out.

    • 1
Aug 14, 2019

Pooring one out for the old boy, Billy Tsai. God speed baby

Maybe I led you to believe that this was a God given gift and not something I worked for, every single day of my life.

    • 1
Aug 13, 2019

On the bright side, for those of you recruiting - there may now be an open analyst position lol

    • 6
Aug 13, 2019

And you know the specific group too!

Dear Mr. RBC TMT MD,

Through my regular market research of your sector I have found that it is very likely you will need additional junior support...

    • 19
Aug 13, 2019

Funny how it's not reported anywhere but he was a corporate banking analyst.

    • 3
Aug 13, 2019

Can corroborate

    • 1
Aug 14, 2019

Corporate M&A

Maybe I led you to believe that this was a God given gift and not something I worked for, every single day of my life.

Aug 14, 2019

Whenever the title is "Corporate and Investment Banking Analyst" you know it's the former and not the latter.

    • 6
Aug 15, 2019

LMAO so true.

Aug 13, 2019

Talk about an ego-death

Aug 14, 2019

He's taping out

Maybe I led you to believe that this was a God given gift and not something I worked for, every single day of my life.

Aug 14, 2019

Real question is, how did he get caught?

Aug 14, 2019

Some intern at the SEC wanted to impress his boss and get a return offer

Aug 14, 2019

how did someone spontaneously trading $30,000 worth of options that expired just days after a merger took place get flagged by the SEC???

    • 1
Aug 14, 2019

I don't think it was spontaneous.

Aug 15, 2019

The SEC has numerous algorithms and data analytics tools that will flag anything that seems like illicit behavior. It was an Easy catch for them - a banker who hasn't traded much from an account decides to randomly spend 30K one day on something very niche.

Aug 15, 2019

He bought a shit load of calls 48 hours before a merger announcement? And FINRA/SEC know he works as a coverage analyst for the investment bank advising on the deal? How he got caught is the easy question to answer. The real mystery is how did this moron traverse through the interview/internship process well enough to be brought on full time.

Aug 15, 2019

RBC's interview process at NYU is resume submit->superday.
No one fucking knows why

    • 1
Aug 14, 2019

Its pretty hard to believe that this kid totally spaced on the definition of insider trading, but it is just as hard to believe that a kid from Stern would think he could get away with this...

Aug 14, 2019

Maybe he got tricked??????? Nah he dumb.

Aug 15, 2019

Bill circa August 11th

finance

Aug 15, 2019

Supposedly, he posted bail and is free for now. Ironically, the bail was the same amount of money he got from his insider trading.

Aug 15, 2019

Whats the chance he goes stern --> RBC insider trading analyst---> HBS---> Axe capital

    • 2
Aug 15, 2019

More like:

Stern -> RBC (terminated) -> Ricker's Island Capital

"I went in with a bachelors in marijuana and came out with a doctorate in cocaine" - George Jung

Maybe I led you to believe that this was a God given gift and not something I worked for, every single day of my life.

    • 1
Aug 15, 2019

What if his personal trading account in which he made $100k was only a bait for the SEC? What if he planned his arrest all along? What if he pocketed $10+M from another hidden account and is now laughing at all of us?

Honestly, I feel that we are missing a big piece of the story - just doesn't seem plausible that he was this dumb.

Aug 15, 2019

elon musk smok

What's your theory chief ?

Aug 16, 2019

Why would he need bait if he had a hidden account all along? Are you seriously suggesting this dude purposely planned his own arrest and invited a firestorm of suspicion by one of the most powerful regulatory agencies in the world because he had another account they somehow wouldn't notice?

Sometimes people really are just this dumb. Look at people like raj rajaratnam and rajat gupta. Some of the biggest names in industry were caught because of their own stupidity.

Aug 16, 2019

The SEC is really good at catching insider trading.

My uncle, who was an SEC practice partner at a big NYC law firm told me "There are 2 kinds of insider traders: those that have been caught and those that will be caught."

If you want a career in finance, don't even think about trying it.

Aug 16, 2019
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