BUSINESS

Stephen Schwarzman Infuriated Over Blackstone Insider Trading Charge

02/15/2009 05:12 am ET | Updated May 25, 2011

Stephen Schwarzman went ballistic yesterday over insider-trading charges leveled against one of his young Blackstone managing directors who allegedly blabbed about a supermarket takeover to help a friend's parents.

The Securities and Exchange Commission accused Ramesh Chakrapani, 33, a managing director of mergers and acquisitions in the London office, of causing $3.6 million in illegal profits on his tips three years ago about the deal Blackstone was handling.

Chakrapani, an American citizen, was working in the US at the time, advising Albertson's on its $16.1 billion sale to a group including Cerberus, Supervalue, CVS and Kimco Realty.

Schwarzman took the news hard, judging from his long angry memo to Blackstone's employees. He said Chakrapani was fired immediately.

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