The FBI showed up with search warrants at the office of three different hedge funds today as part of a huge insider trading probe. Sources say it’s a prelude to the biggest insider trading bust of all time.
One of the focuses of the investigation will be so-called “expert-network” companies, which arrange meetings and conference calls with ex and current managers at companies for traders looking to gain a competitive edge. I’m guessing they provided more than general industry advice and moral support.
FBI Raids Three Hedge Funds Amid Insider-Trading Case [WSJ]
U.S. in Vast Insider Trading Probe [WSJ]
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I’d venture to say alot of this is common and even accepted practice on Wall Street. For what ever reason this current batch of insiders got caught.
About time…
Is anyone really surprised by this news?
This sort of stuff goes on all the time on Wall Street. These people were just incredibly stupid or got too greedy and the establishment had to make an example of them in case they brought everyone down.
They got caught because they did this so long they figured they’d never get caught. More importantly, they didn’t pay their insurance bill. They probably didn’t pay enough for the premium coverage to halt investigations of this sort.
Yes it does happen all the time. People do get caught all the time, but it is very expensive to prove so what the SEC does is cut them a deal they pay a fine and keep on doing what they have been doing. The SEC gets to boast big numbers of people caught, but if they were to investigate everyone and they all lawyered up the SEC would simply go broke trying to prosecute everyone. If the group gets big enough like this one did. They go after them big because they are worth it.
I don’t understand. I thought Wall Street policed itself…
Wall Street does police itself. If you follow the law and play by the rules you will be banned from the good old boy network for life.
Well said old chap. You will fit in splendidly.
/Receives keys to executive washroom
I can’t get past “massive probe.”
Vasoline will help with that…
Or so I’m told.
the pic is perfect though
Isn’t that the hard-ass doc from Scrubs?
This is what I was thought as well. What movie is this?
Wall Street!
Everyone should watch that movie.
Blue Horseshoe LOVES Blue Star
Of course, he was the one that wasn’t inside trading… should have been charlie sheen, but it’s 99% perfect for the article though. Plus, he kicks ass in Scrubs…
I’m going with Bob Slydel from Office Space…although that isn’t where the picture is from.
That would make you both right.
That’s right, he WAS one of the bobs.
I fergot!
no, it’s the plumber from Frasier
My prediction? After a thorough investigation, the government will pronounce these companies guilty of criminal malfeasance and insider-trading.
As punishment they will be handed billions of dollars by the U.S. taxpayer.
The companies will “settle” and not admit “wrongdoing” and everyone goes back to the glittery life of Wall Street
I wish human people could settle without admitting wrong doing and then get loans from the government for expansion, R&D, etc the next year…
Wow…it’s like you can see the future…
The hedge funds also hired people who used to work at certain companies and of course the information that the hedge funds wanted was about those certain companies. So what is a newly hired employee supposed to do, say this is a conflict of interest or show me the money?
Everyone knows Dr. Cox, but most forget he was in Wall Street. And Platoon. And….Point Break.
And Highlander II.
Lets just focus on the now, shall we? ^_^
Ah, Highlander II. As the classic line goes, “There SHOULD HAVE BEEN, only one.”
oh, I bow before your mental IMDB prowess.
I drive my boyfriend crazy with my powers…
but you.
you’re GOOD.
And The Rock.
Sigh…… why can’t they just let the free market be free??
Sometimes, scammers who scam get out of hand, to such a degree that even free market people worry that their scams might suffer. Then an example gets made.
These are the same people who bet on our kids futures: http://www.credoaction.com/comics/2010/11/mortgaging-our-kids-future-literally/
Sigh – if only that wasn’t so true-to-life.
Have done better than 99% of all hedge funds the last 3 years and I had zero insider trading information. … They can’t even beat me with a rigged game. Losers.
You just go ahead thinking your performance is replicable.
They’ll all walk. We have the best government (and watchdogs) that money can buy…
Are we FINALLY going to demonstrate that the financial system in this country is run by the Mafia?
prediction (on average):
24-36 mo sentence with time off for good behavior
upcoming Republican cuts in services, more time off for white collar criminals
time served: 16 months
no restrictions on employment
I don’t believe in violence or property destruction as way to resolve disputes. I couldn’t, however, contain a “hell yea” for the british students who damaged the conservative party building over massive cuts in education spending. As Red Auerbach used to say, “sometimes you got to throw an elbow”. Some people/parties won’t respect you unless you do.
Big fucking deal. At worst someone goes to jail for a couple of TOTALLY WORTH IT years in exchange for keeping millions and millions of dollars of money that they effectively stole from everyone.
Yeah, the creepy guy in the mail room…he can take the fall for everyone…after all…it was his idea. Sounds like a Michael J. Fox movie…doesn’t it…
Insider trading yields REALLY stiff penalties. They do not keep the money…not even close.
Getting a guilty conviction, however…that is the hard part.
I wonder how nasty that slap on the wrist will feel. Why don’t they go after the CEO jerk holes on Wall-street that helped put our economy in the pooper. Better yet, how about going after Charlie Rangel…