Wall Street activity has a vast impact on the U.S. and even international economy. The top traders and managers occupying these positions of power often possess a sense of entitlement as a corollary of the one-two punch of massive wealth and major power. They exhibit a talent and tolerance to the high-risk behavior they engage in everyday. They invest millions, even billions of other people’s money. There is great risk involved with that. Psychologically, risk taking becomes second nature and can often times extend to other areas, sexual among them. The familiarity of that risk-reward scenario makes Wall Street ripe for sex scandals. Aggressive, thrill-seeking and reward oriented, it’s no surprise financial types are often caught with their pants down. Below, inspired by the recent IMF Chief, Dominique Strauss Kahn’s alleged sexual assault of a hotel maid, is a list of the most outrageous Wall Street scandals.
5) James McDermott, Chief Executive at Keefe Buryette & Woods, offers inside trading tips to his porn star mistress
The details: McDermott was married with two children when he was arrested in1999 for tipping-off porn star and mistress Kathryn Gannon on five different investment deals. Gannon made $88,000 thanks to insider trading, while McDermott, after a conviction spent three months in prison and was fined $25,000. Following the incident he was legally barred from working in investment management.
4) Lord John Browne former BP CEO and a Goldman Sachs director uses Goldman funds to support lover Jeff Chevalier.
The details: Browne, a German born Lord, was accused of having a homosexual liason with Chevalier. After further in-court investigation for the misuse of the funds, Browne denied having a sexual relationship with Chevalier. Browne said he met Chevalier jogging in a park, when in fact it was through an escort service. Following the incident he resigned from his posts at both companies.
3) Former IBM executive Robert Moffat leaked inside information to alleged lover, New Castle Funds consultant Danielle Chiesi
The details: The trial implicated an additional 12 people including Raj Rajaratnam of hedge fund Galleon Group. Rajaratnam was found guilty on 14 counts of inside trading on May 11, while Chiesi pleaded guilty. Moffat was sentenced to six months in jail and charged a $50,000 fine.
2) Desdner Kleinwort,the investment banking branch of Allianz, invites prostitutes into the office.
The details: In 2006, six female employees of Dresdner Kleinwort file a $1.4 billion suit against the company on the grounds that men at the company entertained clients in strips clubs and brought strippers and prostitutes into the office making it uncomfortable for the woman employees.
1) IMF head, Dominique Strauss-Kahn or DSK allegedly sexually assaults hotel maid.
The details: Dominique Strauss-Kahn, was up until recently looking like the front-runner for the French presidency. All that has changed following the claims of a hotel maid at the Sofitel in New York who alleges Kahn emerged from the bathroom of his luxury suite naked, chased her and sexually assaulted her. When the police came, Kahn was already at JFK. Authorities arrested him on his flight back to France and was been held in New York. Since the emergence of the scandal, several other women have come out alleging Kahn made inappropriate advances toward them. Kahn, who is married, was provided the million-dollar bail by his third wife. In an earlier event, Strauss-Kahn was under investigation by the International Monetary fund after having an affair with a married Hungarian economist, Piroska Nagy. The affair was later deemed consensual.
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