HedgeCo Archives - Allegations against 14 Wall Street professionals have emerged from the SEC’s ongoing investigation of insider trading at hedge funds and stock trading firms.
The charged defendants include hedge fund managers and trading firm executives, lawyers and corporate insiders. Five of the charged defendants previously pleaded guilty to insider trading charges in Manhattan federal court. The defendants collectively are charged with allegedly participating in insider trading schemes that generated more than $20 million in illegal profits.
“If you talk on the phone, we may be listening, there’s always a chance the person you conspire with is working for us.” FBI Assistant Director Joseph M. Demarest Jr. stated, “Insider trading provides an illegal competitive edge over honest players in the hedge fund business. Our job is to ensure a level playing field through enforcement and deterrence.”
“When we announced our first arrests three weeks ago, I said this case should be a wake-up call for Wall Street. Today the alarm bells have only grown louder.” U.S. Attorney Preet Bharara said, “Over the last three weeks, we have charged 20 defendants with more than $40 million worth of alleged insider trading, and our investigation is ongoing. When criminal activity is your business model, business as usual has to stop.”