Further Reading
  • Den of Thieves
    Den of Thieves
    by James B. Stewart
  • The Predators' Ball: The Inside Story of Drexel Burnham and the Rise of the Junk Bond Raiders
    The Predators' Ball: The Inside Story of Drexel Burnham and the Rise of the Junk Bond Raiders
    by Connie Bruck
  • License to Steal: The Untold Story of Michael Milken and the Conspiracy to Bilk the Nation
    License to Steal: The Untold Story of Michael Milken and the Conspiracy to Bilk the Nation
    by Benjamin J. Stein
  • Inside Out: An Insider's Account of Wall Street
    Inside Out: An Insider's Account of Wall Street
    by Dennis B. Levine, William Hoffer
  • Martha: On Trial, in Jail, and on a Comeback
    Martha: On Trial, in Jail, and on a Comeback
    by Robert Slater
Search
RECENT ARTICLES
NEWS
« Insider Trading Probe Offers Chance to Curb Hedge Fund Power | Main | Fall of Healthcare Hedge Fund Star »
Monday
Nov222010

Starting Now: Insider Trading Dragnet 

Click here for update and profile of hedge fund star Todd Deutsch.

Federal authorities have launched one of the biggest crackdowns on insider trading in years. On Saturday, November 20, the Wall Street Journal reported that a huge insider trading investigation was under way. According to the paper's sources, a veritable hurricane of financial scandal was in the making:

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.

The investigations, if they bear fruit, have the potential to expose a culture of pervasive insider trading in U.S. financial markets, including new ways non-public information is passed to traders through experts tied to specific industries or companies, federal authorities say.

Reading the article, it appeared as though it would be some time before the Feds took any concrete action. Yet perhaps fearing the destruction of evidence after the WSJ's story, investigators swung into action on Monday, with the FBI mounting raids of three hedge funds. The firms were Diamondback Capital Management and Level Global Investors in Connecticut and Loch Capital Management, based in Boston.

While none of these firms are well known, the WSJ story suggests that the insider trading firm could implicate some of the biggest players on Wall Street. The reporters write that "prosecutors and regulators are examining whether Goldman Sachs Group Inc. bankers leaked information about transactions, including health-care mergers, in ways that benefited certain investors, the people say. Goldman declined to comment." 

Also mentioned are SAC Capital Advisors LP and Citadel Asset Management, as well as as Janus Capital Group, Wellington Management Co. and MFS Investment Management. Collectively, these firms have tens of billions of dollars under management.

The most intriguing aspect of the emerging scandal is that insider information appears to have been systematically trafficked by "independent analysts and consultants who work for companies that provide "expert network" services to hedge funds and mutual funds." According to the story:

"Expert-network firms hire current or former company employees, as well as doctors and other specialists, to be consultants to funds making investment decisions. More than a third of institutional investment-management firms use expert networks, according to a late 2009 survey by Integrity Research Associates in New York. The consultants typically earn several hundred dollars an hour for their services, which can include meetings or phone calls with traders to discuss developments in their company or industry.

But the investigations also involve more familiar tip-offs of impending mergers and other deals:

"The SEC has been investigating potential leaks on takeover deals going back to at least 2007 amid an explosion of deals leading up to the financial crisis. The SEC sent subpoenas last autumn to more than 30 hedge funds and other investors.Some subpoenas were related to trading in Schering-Plough Corp. stock before its takeover by Merck & Co. in 2009, say people familiar with the matter. Schering-Plough stock rose 8% the trading day before the deal plan was announced and 14% the day of the announcement."

Not surprisingly, some of the investigations under way loop back to the Galleon Group case involving that firm's founder Raj Rajaratnam and 22 other defendants. Some 14 people have already pleaded guilty in that investigation and presumably some of them are providing insights about illegal doings elsewhere. 

Among hedge-fund managers whose trading in takeovers is a focus of the criminal probe is Todd Deutsch, a top Wall Street trader who left Galleon Group in 2008 to go out on his own, the people close to the situation say. A spokesman for Mr. Deutsch, who has specialized in health-care and technology stocks, declined to comment.

References (171)

References allow you to track sources for this article, as well as articles that were written in response to this article.
  • Response
    Response: diet plan
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Response: Willis
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Response: lady
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Response: AE Same Day Loans
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Response: kostenlose porno
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Response: Dating disabled
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Response: Buylikes247.com
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Response: Dre USA
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Response: Cheap Dr Dre Beats
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Response: slim colon cleanse
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Response: Beats Monster
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Response: GHD Stockists NZ
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Response: systèmes de paris
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Response: product
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Response: systèmes de paris
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Response: product
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Response: product
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Response: 643903
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Response: 644008
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Response: 644025
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Response: 643290
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Response: 643783
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Response: 643938
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Response: 643891
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Response: 643309
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Response: 643902
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Response: 643936
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Response: a must have
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Response: shopping item
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Response: hot item
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Response: a must have
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Response: 643790
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Response: 643698
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Response: 643793
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Response: 643782
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Response: a must have
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Response: 643982
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Response: 643361
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Response: Télécharger
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Response: 643317
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Response: 643964
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Response: 643566
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Response: 643310
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Response: 643977
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Response: 643349
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Response: 643907
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Response: 643971
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Response: 643716
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Response: 643669
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Response: 643274
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Response: 643908
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Response: 643889
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Response: 643961
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Response: 644018
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Response: 643813
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Response: 643910
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Response: 643278
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Response: 643933
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Response: 644100
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Response: 643331
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Response: 643322
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Response: 643438
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Response: 644425
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Response: 643431
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Response: 644131
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Response: 644126
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Response: 643571
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Response: 643798
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Response: 643414
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Response: 643690
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Response: 643949
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Response: 644099
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Response: 643966
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Response: 644109
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Response: 644415
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Response: 643921
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Response: 643932
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Response: 643898
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Response: 643308
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Response: 644027
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Response: 643927
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Response: 644017
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Response: 643582
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Response: 643459
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Response: 643691
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Response: 643890
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Response: 643280
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Response: 643786
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Response: 643797
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Response: 643992
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Response: 643427
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Response: 644022
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Response: 643416
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Response: 643905
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Response: 643958
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Response: 644120
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Response: 643420
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Response: 643901
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Response: new rdx song
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Response: new business ideas
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Response: new cpr guidelines
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Response: new fn fal
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Response: Hot Deals
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Response: Hot Deals
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Response: Hot Deals
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Response: flavors.me
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Response: seo services
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Response: dieting
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Response: babor skin care
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Response: Revitol Reviews
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Response: acai berry diet
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Response: Pure Life Cleanse
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Response: how to daytrade
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Response: new build homes
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Response: theargon.de
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Response: limelight rush
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Response: gns-Clan.de
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Response: order Alluria
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture
  • Response
    Starting Now: Insider Trading Dragnet - Insider Trading - CheatingCulture

Reader Comments (1)

I finally found the soul mate ,I like you these things, maybe I'm interested in these right, looking forward to you as soon as possible to update your works!!!replica breguet watches

December 1, 2010 | Unregistered Commenteryoyo
Editor Permission Required
You must have editing permission for this entry in order to post comments.