Insider Trading: Criminal Charges, Fines Against Large Number of Wall Street Executives and Investors
November 22nd, 2010Upstarts get busted in an attempt to maintain appearances while public menaces Goldman Sachs and AIG are allowed to slip from the headlines.
Via: Los Angeles Times:
Federal investigators in New York are wrapping up an extensive investigation into allegations of insider trading and other stock-trading irregularities that could bring criminal charges or monetary fines against a large number of Wall Street executives and investors, a Washington official who has been briefed on the inquiry said Saturday.
Speaking anonymously so as not to jeopardize the case, the official said the investigation has been underway for “several years” and is likely to result in the prosecution of traders “around the country.”
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“They are in the final stages with this,” the official said. “It could bear fruit by the end of this year.”
Speculation first arose that the FBI and other federal investigators were nearing the end of a years-long inquiry into irregularities when Preet Bharara, the U.S. attorney in Manhattan, gave a speech in October warning that “illegal insider trading is rampant and may even be on the rise.”
Bharara added, “Disturbingly, many of the people who are going to such lengths to obtain inside information for a trading advantage are already among the most advantaged, privileged and wealthy insiders in modern finance. But for them, material nonpublic information is akin to a performance-enhancing drug that provides the illegal ‘edge’ to outpace their rivals and make even more money.”
Related:
Insider Crimes, Funny Money and Options Rackets
They Made a Killing: The Use of Knowledge of Covert Operations in the Stock Market
Zerohedge and Deep Capture blog are portraying this is the possible start of a ‘real’ investigation, that the hedgies that were raided weren’t small-change…you don’t think it will amount to much? I am skeptical myself…