Feds to file charges in huge insider trading investigation


Federal authorities, capping a three-year investigation, are preparing insider-trading charges that could ensnare consultants, investment bankers, hedge-fund and mutual-fund traders and analysts across the nation, according to people familiar with the matter.

The criminal and civil probes, which authorities say could eclipse the impact on the financial industry of any previous such investigation, are examining whether multiple insider-trading rings reaped illegal profits totaling tens of millions of dollars, the people say. Some charges could be brought before year-end, they say.

“Tens of millions”? Try “billions” instead. Language like that makes me wonder if this is just a show investigation of a few small fry.

One focus of the criminal investigation is examining whether nonpublic information was passed along by independent analysts and consultants who work for companies that provide “expert network” services to hedge funds and mutual funds. These companies set up meetings and calls with current and former managers from hundreds of companies for traders seeking an investing edge.

Gosh, that sure sounds like insider trading to me. And how long has this been going on?

Zero Hedge, who broke stories on expert networks over a year ago, says “Good bye expert networks (and many, many hedge funds) – we hardly knew you.”

Could the hedge fund industry be about to experience its biggest insider trading bust? As much as we would like to believe so, the day when justice finally prevails over legal fees may still be far away. In the meantime, Zero Hedge is proud to have assisted in the exposure of this latest massive legal insider trading scam which favors the preferred and the wealthy over everyone else, precisely the kind of thing that makes investors hate the capital markets…

The Feds need to file criminal charges, and lots of them. Our financial system is rotten and corrupt at the core. Civil penalties and cost-of-doing-business fines will not stop criminals in expensive suits. Prison and asset forfeiture will.

It’s time to take out the garbage on Wall Street.

  • It´s a comical to remain repeating how “difficult” all of this is. These guys aren´t talents, they are simply grasping frauds who have a sagacity, important people in their corner. The deception is too large to be a secret and the evidence is all around country not to reference, lots of very smart people could pick these deception apart in a minute.

    • In a book about the history of Vegas, a FBI agent said the mobsters aren’t smarter, it’s just that they’ll do things the rest of us won’t do.

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