U.S. Said to Consider Further Insider-Trading Charges

[maddezmom]

U.S. Said to Consider Further Insider-Trading Charges
October 19, 2009 , 7:12 am
The arrest of Galleon Group founder Raj Rajaratnam on insider trading charges has shaken the secretive hedge fund world, in which intelligence on companies is often shared among Wall Street analysts, traders and other investors, Bloomberg News reported.

But the industry might have to brace itself for another wave of arrests, as regulators are reportedly gearing up to file charges against a wider array of insider-trading networks.

Federal investigators are preparing for a crackdown, based on at least two years of investigation, with further charges expected to be dished out to hedge-fund managers, lawyers and other Wall Street players, some linked to the criminal case against Mr. Rajaratnam, Bloomberg News reported, citing people familiar with the matter.

Some of the investigations are based on wiretaps, while others come from a secret Securities and Exchange Commission data-mining project, according to the news service.

The case against Mr. Rajaratnam signals a new zeal by authorities to clamp down on Wall Street crime after failing to detect the $68 billion Ponzi scheme by Bernard L. Madoff.

more:http://dealbook.blogs.nytimes.com/2009/10/19/us-said-to-eye-further-insider-trading-charges/

[TexasObserver]

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