Chicago Booth | Ms. Future CMO
GMAT Have Not Taken, GPA 2.99
MIT Sloan | Ms. International Technologist
GMAT 740, GPA 3.5
UCLA Anderson | Ms. Art Historian
GRE 332, GPA 3.6
Georgetown McDonough | Mr. International Youngster
GMAT 720, GPA 3.55
Columbia | Mr. Chartered Accountant
GMAT 730, GPA 2.7
Harvard | Mr. Harvard Hopeful
GMAT 740, GPA 3.8
Yale | Mr. Philanthropy Chair
GMAT Awaiting Scores (expect 700-720), GPA 3.3
Kellogg | Ms. MBA For Social Impact
GMAT 720, GPA 3.9
N U Singapore | Mr. Just And Right
GMAT 700, GPA 4.0
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GMAT Waived, GPA 3.2
Columbia | Mr. Startup Musician
GRE Applying Without a Score, GPA First Class
Chicago Booth | Ms. Entrepreneur
GMAT 690, GPA 3.5
Columbia | Mr. MGMT Consulting
GMAT 700, GPA 3.56
Harvard | Mr. Google Tech
GMAT 770, GPA 2.2
Harvard | Mr. Spanish Army Officer
GMAT 710, GPA 3
Harvard | Mr. Future Family Legacy
GMAT Not Yet Taken (Expected 700-750), GPA 3.0
Wharton | Mr. Big 4
GMAT 770, GPA 8/10
Rice Jones | Mr. ToastMasters Treasurer
GMAT 730, GPA 3.7
Harvard | Mr. Public Health
GRE 312, GPA 3.3
Kellogg | Mr. Hopeful Admit
GMAT Waived, GPA 4.0
London Business School | Mr. Indian Mad Man
GMAT Have not taken yet, GPA 2.8
Kellogg | Mr. Operations Analyst
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UCLA Anderson | Mr. Microsoft India
GMAT 780, GPA 7.14
Harvard | Mr. Belgium 2+2
GMAT 760, GPA 3.8
Kellogg | Mr. IDF Commander
GRE Waved, GPA 3.0
Harvard | Mr. Community Impact
GMAT 690, GPA 3.0
Berkeley Haas | Mx. CPG Marketer
GMAT 750, GPA 3.95

How A Harvard MBA Traded On Inside Info

On Nov. 19th, Samir Barai went online to the website of The Wall Street Journal to read a story that had to set off all kinds of alarm bells. The headline on his computer screen: “U.S. in Vast Insider Trading Probe.”

Barai, 39, founder of a New York-based hedge fund firm called Barai Capital Management LP, could scarcely believe what he was reading.

“Federal authorities, capping a three-year investigation, are preparing insider trading charges that could ensnare consultants, investment bankers, hedge-fund and mutual-fund traders, and analysts across the nation, according to people familiar with the matter.”

The Wall Street Journal sketch of Barai

As Barai kept scrolling down the screen, the story’s detail could only have made his stomach churn. “The criminal and civil probes, which authorities say could eclipse the impact on the financial industry of any previous such investigation, are examining whether multiple insider-trading rings reaped illegal profits totaling tens of millions of dollars, the people say. Some charges could be brought before year-end, they say.”

Barai’s attention, however, would have been especially drawn to the story’s fifth paragraph. It noted that the Feds were examining a Silicon Valley “investment research” firm called Primary Global Research LLC that connected experts with investors seeking information in the technology and health care fields. Barai allegedly knew Primary Global well—he had been paying an employee in the firm for inside information for years, according to the federal investigators.

Later that day, tapping out a text message on his Blackberry, Barai admitted to a colleague at his firm that he had read the Journal story ten times. The Harvard MBA had good reason to panic, according to allegations filed by the government. For the past four years at least, he had been using inside information to trade in the public securities of a number of technology companies. In some cases, he allegedly got advance notice of revenues, profits and gross margins before it was publicly announced from paid informants inside the companies. In other cases, he allegedly got the inside dope from Winifred Jiau, a contact at Primary Global in Mountain View, California.

That day, Nov. 19th, 2010, it was hard for Barai to put the Journal story out of his mind. Indeed, later that evening, during a lengthy exchange of messages sent from his Blackberry, he told Jason Pflaum, a 38-year-old research analyst at his firm, that he had also read a follow-up article by the news agency Reuters.

“FUUUUUCK,” CONCLUDED THE HARVARD MBA IN A MESSAGE SENT FROM HIS BLACKBERRY.

As Barai summarized the contents of the WSJ and Reuter stories to Pflaum, according to investigators, Pflaum played dumb, allowing his boss to relay the highlights as if he had no knowledge of what was going on. What Barai didn’t yet know was that Pflaum, who began working for Barai Capital in March of 2008, had already agreed to cooperate with federal investigators in exchange for a reduced sentence.

“Fuuuuuck,” concluded Barai. “Delete ur bbm chart,” he finally wrote before signing off for the night and trying to go to sleep at his small high-rise apartment in lower Manhattan.

About The Author

John A. Byrne is the founder and editor-in-chief of C-Change Media, publishers of Poets&Quants and four other higher education websites. He has authored or co-authored more than ten books, including two New York Times bestsellers. John is the former executive editor of Businessweek, editor-in-chief of Businessweek. com, editor-in-chief of Fast Company, and the creator of the first regularly published rankings of business schools. As the co-founder of CentreCourt MBA Festivals, he hopes to meet you at the next MBA event in-person or online.