the guilty plea we announced today was by one of sac's portfolio managers, richard lee. who until very recently co-managed a $2.15 billion portfolio with special mergers and acquisitions. while still a portfolio manager at sac, lee obtained inside information with respect to various securities, including yahoo and 3com corporation. as set forth in the larger indictment, the particular story of richard lee's time at sac is embl emblematic of the broad culture problem at the fund. as alleged, the sac companies hired richard lee despite a reputation for insider trading. indeed, he was hired over objections from sac's own legal department despite specific warnings during the application process that lee had improperly been part of an insider trading group at his prior employer. and so, predictablpredictably, virtually the inception of his employment at sac in 2009, richard lee began to trade on inside information. conduct, as i mentioned, that he pled guilty to two days ago. and he is continuing to cooperate with the government's investigation. second, as i mentioned, this mo

there was nine, now -- there's richard lee, but before this other richard lee which was nine on my count ten with richard lee and now this is 11. liz: charlie, thank you very much. oh, and we forgot to mention the maybach. they're going to kill me. >> that's his car. liz: the maybach. >> bo dietl said that he came to dinner, arrived at dinner, he was dressed in khakis, a polo shirt, sneakers, but he came out of a maybach. liz: okay, all right. a beemer? that's nothing. we'll be right back with much more x be the dow's concern and the dow's still up 8 points. stay tuned. if you're serious about taking your trading to a higher level, tdd#: 1-800-345-2550 then schwab is the place to trade. tdd#: 1-800-345-2550 call 1-888-577-5750 or visit schwab.com/trading to tdd#: 1-800-345-2550 learn how you can earn up to 300 commission-free online trades tdd#: 1-800-345-2550 for six months with qualifying net deposits. tdd#: 1-800-345-2550 see how easy and intuitive it is to use tdd#: 1-80345-2550 our most powerful platform, streetsmart edge. tdd#: 1-800-345-2550 we put it in the cloud so you can use i

hiring richard lee despite the fled flagging. ich is the chicago based hedge fund. the other issue is compliance. had a compliance department that the feds are saying investigated communication at random, managers failed to alert the legal team to specific issues even when they were presented to management. cited one analyst who has since pled guilty to insider trading noting on an '07 sun microsystems trade, quote, my edge is contacts at the company to which his manager replied and forwarded it, i suspect that line may wake up some of our legal eagles. when the coo replied, he said, no, just a general inquiry to confirm we're not in possession of nonpublic information. the coo went on to say it was just an investment idea and to make the analyst more comfortable with the direction of that investment. finally, it was the culture. the presence of inside information wasn't openly discussed. the situation is described in the indictment showed that they were often discussed offline, in short spurts, and that there wasn't really any fo

on monday, richard lee, a former sac capital employees entered into a plea agreement. he has a maximum potential prison sentence up to 25 years but he did agree to cooperate, provide documents and testify before the grand jury. >> and this is a man with a history of insider trading. >> there are some mentions when he was being interviewed for the job, some people flagged lee and said, steve cohen, this guy has a history and cohen and others overlooked it. there are a lot of stocks involved here. but he flipped this week and he has been participating in this. >> so really, that could have been a turning point, from a civil suit to a criminal suit. the justice department had been trying to go after cohen and s.e.c. but they could never put it together in a criminal. now they did and it could be this guy lee. >> the s.e.c. put out this 46-page white letter to its employee on monday saying you will not found a witness to testify that they heard these things, cohen specifically in the s.e.c.'s case involved in any of these trades or squirrely tactics. but today we have seen

in 2009, richard lee began to trade on inside information, conduct, as i mentioned, that he pled guilty>> reporter: and in that guilty plea last week, lee admitted receiving information about yahoo! from a sell side analyst, we know that was sadeep, who was allegedly talking to a number of people. the hedge fund reported him to his firm. he did not enter a plea at his initial appearance in california today. he's free on bond, due back in court in new york next week, if prosecutors can persuade him to plead guilty, one more building block in their case of what they call pervasive insider trading at s.a.c., which, of course, maria, has pleaded not guilty. >> an amazing development. scott, thank you very much. we'll keep following that. scott cohn. >>> in an entirely different kind of court, big sodamakers scoring big today. kayla? >> reporter: maria, new york's notorious ban was defeated, this time by a state supreme court of appeals, and today, the court's opinion determined that the board of health overstepped the boundaries of its lawfully delegated authority and deemed the use of that

allegedly passing on information regarding a microsoft and yahoo deal to sac capitol portfolio manager richard lee in 2009. the sec said in a statement that aggarwal "obtained confidential information from a close friend at microsoft and passed it along to lee knowing that he would likely trade on it." prosecutors are also pursuing criminal charges against sac capital, which has pleaded not guilty. a famous call to short herbalife stock appears to be turning into a headache for hedge fund manager bill ackman. seven months ago, ackman said the stock would collapse and refered to herbalife as a pyramid scheme. scheme or not, the stock has gone from $24 to $60 since his call, and up almost 100% for the year. shares gained speed yesterday on earnings that topped expectations. the nutrion company also raised its forecast. now ackman is questioning the earnings and the number of distributors leaving the company. now on to more earnings news. retailer coach is in a clutch situation. sales are softening as the handbag maker is facing fierce competition from michael kors and kate spade. however, overall re

first the guilty plea we announced today is by one of the sac portfolio managers richard lee. until recently he co-managed a one and 1/4 billion dollar portfolio to focus on special situations like mergers and acquisitions. while still a portfolio manager at sac he obtained inside information's with respect to various securities including yahoo and flee, corporation. as set forth in the larger indictment, the particular story of his time at sac is emblematic of the broader culture problem at the fund. as alleged, the sac companies hired richard leech said spite -- despite a reputation for insider-trading. indeed, he was hired over objections from the legal department of sac despite specific warnings during the application process, that he had improperly been part of an insider trading group at his prior employer. and so predictably from virtually the inception of his employment at sac in 2009 he began to trade on inside information, contact, as i mentioned, that he pled guilty to two days ago. he is continuing to cooperate with the government's investigation. second, as i ment

former employee richard lee pleading guilty to insider traying for yahoo! and 3c.page indictment describe's lee's trading on this nonpublic information and hired by sac after red flags were raised to cohen he was previously involved in insider trading when working for citadel. citadel said lee was fired years before for misconduct. and lee's attorneys says he is looking forward it moving on with the next stage of his life. >> andrew stoeltman of stoeltman law offices says it should be shut down. also with us is michael balkener of balkener and associates. good afternoon, gentlemen. you say sac capital should be shut down. that's not the way it works. they will defend themselves. what are you saying? >> i think investors will end up doing it. when you have a company under criminal indictment, especially when they manage money, that's tough for the company to overcome. i don't think there is any question as this case runs through the course of criminal justice system will firm will be shut down. steven cohen may be able to manage money for money for additional employ

filing complaints against sandeep aggarwal as someone who tipped richard lee who pleaded guilty last allegedly involved inside information passed onto lee about negotiations between yahoo! and microsoft back in twin 2009. you remember those negotiations that ultimately did not go anywhere but allegedly allowed sac to tried on this inside information and reap lots and lots of profits. another name unveiled in the case but in this case sandeep aagerwal is not pleading guilty. he's due in court later today. >> he was not named in the indictment read last week. >> right. and in richard lee's guilty plea, he admitted to trading on inside information that he got both from an analyst as well as a corp rot insider and this apparently according to the s.e.c.'s press release on this, this apparently now names the analyst that was the tipper of the inside information richard lee traded on. >> we'll see if he's fighting those charges. scott co-hone with tkcohn with . >>> major companies have plenty of releases on tap. we've learned that's whapi eed with case and schiller home prices. >> and face

knowledge, and really encouraging the culture at sac, in one case saying he hired a portfolio manager, richard lee, who earlier this week pled guilty to insider trading, even over the objections of his legal team because he was known for insider trading. he says, preet bharara, it's no coincidence what was happening here was pervasive, part of the culture, especially when you already had eight employees indicted. >> when so many people from a single hedge fund have engaged in insider trading, it is not a coincidence. it is instead the predictable product of substantial and pervasive, institutionper vase -- per vase si sieve -- pervasive institutional failure. >> they want to see the company back in the millions of dollars, but they are not freezing assets right now because they don't want to do harm on wall street. here's what preet bharara said. >> our actions today do not wish to seek any assets, and we are always mindful to minimize risks to third-party investors. in other words, we have not today restrained any money, and we will discuss with the company a reasonable method going forward to pr

in this case wiretaps, no mention of richard lee, vaughn man who is cooperating with the government, who came from another hedge fund, quoted in the indictment as being part of an insider-trading circle, the hedge fund from which he came, denied there is an insider trading circle at their office but the bottom line is we are in the beginning of building the case and the government has to put up or for lack of a better term shut up and what they put up will include those wiretaps. we did get a quick chance to ambush the attorneys as they came out to see if they would explain why stephen cohen has not been charged, how he feels about that, the spirits of the people at sac because that is a term that will be doing business civitan with a lot of people withdrawing money. >> are the spirits of the people? are people dispirited by what is going on? at a loss of words other than fine, everyone is just fine. dennis: we have got charlie gasparino who knows a much about this as anyone else. >> peter looks really find. that was a vote of confidence. you could tell nothing has changed the sac bu

fundamental elements of the trial, and that is the 34-year-old trader who is turning states' evidence richard lee run 1.25 billion fund and traded insider information on for example yahoo! and there is a stretch of taking that information to what he did, and saying that the organization overall is a magnet for market manipulators and there is a link there that is quite difficult to establish? >> well, yes, but as the u.s. attorney has said, at least eight convictions or prosecutions so far of other traders, and they have information that the compliance department was not doing its job and according to the united states attorney, the compliance department is part of the problem, so it is more pervasive than mr. lee. i am happy that you raised lee, because he was not on anybody's radar and we were not talking about lee. then out of left field we heard about lee who has not only plead guilty, but cooperating and you wonder how many more people out there like that that we don't know about right now. >> okay. you made the point. i have a feeling that we will talk to you a couple of more times over the

richard, howard,. >> i live -- my name is lawrence lee, i live in the thrower hey and i'm a board member of the association. i'm department on bicycling to get around the city and it's really the most affordable way for me to get around. too frequently we hear about injuries and deaths caused by automobile traffic around this place. the situation is dangerous and the automobile traffic is frankly just uncivilized and our neighborhood residents deserve better. i continua to hear how riding on the street is frightening for those who have to use it and sometimes they even have to use sidewalk. we cyclists do not have the option to push a gas ped /al to get uphill and achieve that acceleration that's needed to keep up with the traffic. i thank you for the work that's been made on oak and fell. that has made east and westbound traffic a lot more civilized, but we need improvements on masoniy. i commend you on the years /spepbts on developing this project. i's a common sense proposal with elements that have been tested all over the world so you can /*r successfully including urban cities and they are proven to m

lee ann has the story. >> on june fourth richard and cindy lives changed dramatically after he suffered a stroke. >> he wastting up for work and had a stroke and then we were at the hospital. >> today tested new robot did he vase at santa clara valley medical center. the stroke affected his speech and the right side of his body. whale he's able to pick up the left leg on his own, the robotic skeleton helps him move the right leg. allowing him to walk. >> a little bit like cruise control with the car if trying to get somewhere and it adapts to the terrain in front of up and downhill. adapt to the patient strength. >>reporter: comes with backpack with two battery 4 motor and computer it was developed by richmond base company x o buy ought ick. stroke damage blood vessels. pwren now has a hard time communicating information which would normally tell his body to move or speak. the only way to improve is through constant practice. in a typical physical therapy session would he probably walk 10 feet. but with the x o did he vase, today he walked 360 feet. >> what this will hopefully do is allow the person to rel

lee roth, ozzy osborne. >> i will go with keith richards. >> he is not a great singer, but it would be fun. >> it would be. i wouldn't understand a word he is saying. >> in hard castle and mccormick, what is the dude that played mccormick? >> i can't remember his name. >> i want rueben stein. >> i am thinking of a different comedy. >> mick jagger. look at it on youtube and 57 minutes in when he starts singing "satisfaction" amazing. >> why? >> i want to say imogen. >> i can't sing. >> she likes the -- she has the hypnotic accent. >> she is not a gym. i'm a gym. >> what is the best way to beat the heat? nick gillespie discusses his new book. i wear a tank top and drink lots of fluids. would the world be better off without the internet? the internet says no. mind your own business, internet. all right, greg, sorry. >>> should the cabin crew be a size 2? should too many pounds keep them on the ground? an indian airline is reportedly planning to hire only skinny female flight attendants. it is in order to cut down on the price of fuel. go air as it is called claims the policy will help them save $500,000 or a

lee? yes, walker? yes. that motion passes unanimously. case no. 6774. 3554 san bruno avenue. owner of record and appellant. richard thomas environment and land management. the appellant is requesting that the abatement appeals board grant jurisdiction. >> the case is the same. we request that you not do so on this case. >> just for clarification, there has not been an order of abatement on this item, is that correct? >> with respect to the legal use, no. there has not. >> david berry, my comments from before should apply equally to this. if you have any questions i would like to answer them. >> if your client would like to speak, he can do so now on your three minutes. >> thank you very much. when i found this notice, i did show good cause. i was basically being penalized by allegedly having this phantom unit among the one building in question and that building is at 3556 through 3564 san bruno avenue. it's that old building that we have a handout that was part of the san born marp that it was in existence in 1990. after checking the record myself i found it was hooked up to gas the first 1265 is mentioned by the

richard for the berkley years and a narrow sort of thing. timothy grew up around here. tell us something. >> yeah, he did grow up ashed here. one of the first art experiences was at the lee his grandmother took him to see the very first van go exhibition. his very vivid memory that introduced van go who is know an icon to the american public was that the tour group going through was laughing at these paintings as not being art. more over the tour guide was laughing at the works. i find the story fascinating because it was a post impressionist and each of those artists were considered quiet radical and possibly suspect in their day and yet of course over time this is what happens through the ground breaking and like richard and the berkley years and you really get this accumulation of scholarship and great works of art and new eyes and perspectives that move the artists from the margins of the society to the absolute center. i have always been struck by this because one of the take aways that he got from the experience of course was that the public was quiet fickle and that today's star of the art world might be tomorrow's has been. it's one of the reasons that you follow

lee and marco rubio. >> if republicans refuse to vote for the resolution to contain further funding of obama care we can stop it. >> richardwarning its party if that results in a government shutdown. >> it is dumbest as long as he is president it is law. >> house republicans are preparing to slam the law and slow down the number of people signing up and whip up consevenatives. and the stakes are so high for the president he huddled with various hollywood stars like amy pohler to get young people to sign up for the exchanges. >> we would like to check in with our fox affiliates and see if they are working on anything in particular to stand out. >> a good samaritan who sprang in action after seeing a baby where she should not have been. right here in new york. here is the fox affiliate. >> the edge of the rescue is stunning. 18 month old baby girl fell from the wendo and climbed on the a wning. a farm so worker saw the incident and prevent her from falling from the ground. it was too short to reach the a wning and he was directed to the child's grandmother. >> when she opened i asked her where is your baby? and i told her, y

richard whipple, the office of immigration and civic engagement affairs. (applause) >> [speaker not understood] rodriguez sack burn of grant makers concerned with immigrants and refugees. (applause) >> and as always, the excellent team from sfgovtv and mayor lee's communications team. thank you very much. the mayor will now take a few questions. (applause) >> i don't have violet's energy. [laughter] >> >> any questions about our initiative here? >> [speaker not understood] about what this means to you? >> well, in many ways, certainly for my life, having been the son of immigrant parents, i knew that they were very focused on being citizens because they wanted to get fear out of the way when they were adjusting. to me, i think that's been the story of so many of my clients when i was an attorney at the asian law caucus for a number of years that, as i serviced seniors and people living in low-income housing, oftentimes they wouldn't even want to use the legal process because of their fears. they didn't know what would be behind each door. and even speaking to an attorney sometimes was difficult for them, especially when i was trying to educate residents at [speaker not understood] about what is the warranty of habitability. something that we'll

government against obama care and so has roy blunt and on thursday richard bird called it "the dumbest idea i ever heard of." by the time lee's letter was released on thursday, kirk's name was no longer on it, neither was john cornyn. he was off it, too. notably silent in all this, senate republican leader mitch mcconnell. the tea party right never trusted him and mcconnell will face a challenge in the republican primary next year in kentucky. may be an opening for all this with obama and started to hint at it in his speech. >> the good news the number of growing senators are looking to join counterparts and do things to get things done on the senate. they work together on an immigration bill that economists say will boost our economy by more than $1 trillion and strengthen border security and make the system work. you have a faction of republicans in the house that won't even give that bill a vote. that same group gutted a farm bill that american farmers depend on and most vulnerable children depend on. >> for obama and democrats, that's the goal here. exploit the gop divisions in the senate and isolate the republican house

lee knew very well what he was doing. even knew where jeb stuart was. in fact, he complained to georgia brown, the stepson of richard as you'll that he'd been reading from the newspaper that stuart was writing around baltimore and washington. so anywhere stuart was. what he was irritated with about stuart was not that stuart was not providing them with intelligence but that stuart was violating the principle of concentration of forces. it was not intelligence that lee wanted to do with stuart and his calvary that he wanted, and that was what was irritating to robert e. lee. so with stuart responsible for the battles of -- the battle of gettysburg? in that respect, no. robert e. lee new exact what he's doing when he ordered the concentration of the army of northern virginia at gettysburg. rather, jeb stuart disappointed him i miss handling the role that he was supposed to have in providing screening for the right flank of the army. but it was not a case where robert e. lee lumbered into gettysburg because jeb stuart had somehow left him blind and groping around the countryside. that became a convenient excuse for han

lee, marco rubio. >> if republicans in both houses refuse to vote for any continuing resolution that contains further funding or enforcement of obama care, we can stop it. >> reporter: in blunt terms, richard burr says the party will take a hit if it results in a government shut down. >> dumbest idea i've ever heard of. as long as barack obama is president, the affordable care act is going to be law. >> reporter: they have town halls in august, also to whip up conservatives ahead of the 2014 mid terms, stakes are high for the president. that's why this week he huddled with hollywood stars like amy poehler to try to figure out how to get more young people to sign up for the exchanges. >> ed henry, thank you. more on this with the panel. tune into fox news sunday. chris wallace interviewing treasury secretary jack lew, and mike lee. check local listings for times. >>> you heard the saying, if it looks like, swims like, quacks like a duck, it is probably a duck. apply that test to nonworking union advocacy groups. when you do, critics see a union trying to make an end run around the rules. supporters of worker centers disagree. here is chief congressional correspondent mike emanuel. >> report

lee has led, the senator from utah, 12 senators are on board with that. other senators have said in strong language they don't like it. tom coburn said that. richardr of north carolina said that. i'm told there's more to come. there's a fair amount of descent as to whether shutting down the government is a good thing. a lot of these guys weren't around in 1996, so their memories aren't as good. >> so we hear often that the definition of insanity is doing the same thing over and over again expecting different results. does that sound familiar with these 39-plus votes to repeal obama care? i'm just wondering -- and just to that point, i'm just wondering whatever happened to the repeal and replace strategy? they got caught up on repeal, nothing on replace. what's going on here? >> on the first point, important thing to mention is most of those repeal votes happened in the last congressional session. so there are some republicans who are new to congress, who wanted to be able to say that they voted to repeal obama care and go on the record for that. that's a reason why they had these more recent votes. i agree with you. i think republicans will fail t

richard burrr says it's the dumbest idea. ul never stop obamacare. if you shut down the government, it will be a political land mine that will hurt republicans in 2014. leestands firm. he says fwe are against obamacare, we have to do everything we can to stop it. here's an opportunity to take all the discretionary funning. >> >> shannon: he doesn't seem to be feeling the heat -- he may be feeling it, but he seems positive. a wonderful panel. thank you, always, for the panel. you can catch the interviews with jack lew and mike lee right here at 2:00 and 6:00 eastern, after america's news headquarters. we have been asking for your thoughts on the white house scandals, do you feel like they are stunts or legitimate issue? >> there are multiple plans in play, but none will be put before toa vote before the augustr recess. the latino jewish congressional caucus has its own ideas about any immigration plan. joining us now are two members of this group. welcome, both. >> great to be here. >> thank you. >> congressman, let's talk about what the american people think about this immigration debate. our recent poling shows that whether they believe tell happen this