Insider Trading and other Stock Market Skullduggery
The Obama Justice Department is Stepping up Insider Trading Investigations
The Obama Justice Department has stepped up insider trading investigations and enforcement. In particular it is focusing on so-called "expert network firms" that provide information to mutual funds and investment banks on developments in corporations that are likely to affect stock prices such as unannounced mergers and acquisitions, unexpectedly high or low earnings and the like. Charges have been brought in a number of cases where insider information has been obtained unlawfully from employees of corporations and passed on to hedge funds, mutual funds and other big investors.
Ordinary investors do not have access to this privileged information and, as a result, are at the "bottom of the food chain," the last to find out the good news or the bad news. For that reason they are well advised not to play this loser's game in the Wall Street casino and put their money in no load, low cost, tax efficient no load mutual funds of the type offered by Vanguard and a few others whose objective is to serve the interests of their investors.
1-15-13NYTimes "How Pursuit of Billionaire Steven Cohen Hit One Dead End at SAC Capital
- How Pursuit of Billionaire Hit One Dead End - NYTimes.com
The investigation of SAC Capital Advisors highlights the challenges of using lower-level workers to build a case against their boss.
1-15-13NYTimes "Analyst Sentenced to More than 4 years in Insider Trading Case"
- Analyst Sentenced to 4 Years in a Turbulent Insider Case - NYTimes.com
John Kinnucan, a research analyst who waged a harassment campaign against the government officials investigating him over insider trading, had leaked information about technology companies to hedge funds.
9-25-11NYTimesMagazine "The Greed Police, All You Need to Know About Insider Trading"
- In the Insider Trading War, Market-Beaters Beware - NYTimes.com
In the crackdown on insider trading, the ambiguity of the law is an asset — and anyone who consistently beats the market is a suspect.
Four Arrested in Federal Insider Trading Investigation
- 4 Arrested on Insider Trading Charges
The arrests advance the governments focus on so-called expert-network firms, which have emerged over the past decade as the research departments of large investment banks have retrenched. Another reason for their growth is Regulation Fair Disclosure
1-5-11NYTimes--Wiretaps Upheld in Galleon Insider Trading Case
- Wiretaps Upheld in Galleon/Rajaratnam Case
A federal judge ruled Wed. that fed prosecutors could use wiretapped telephone conversations as evidence against six defendants in the insider trading case involving the Galleon Group. The case has spawned a wide-ranging government investigation.