Financial Regulatory Forum

Why U.S. inside traders escape harsh sentences

By Reuters Staff
January 7, 2011

US Courthouse, New YorkBy Andrew Longstreth

NEW YORK, Jan 6 (Reuters Legal) – The recent flurry of insider-trading arrests by the Manhattan U.S. Attorney has set Wall Street on edge. But if recent history is any guide, people found guilty of that crime tend to get off relatively easy, a Reuters Legal analysis suggests.

Lessons from Galleon

By Reuters Staff
May 10, 2010

In the prosecution of Galleon Group, the SEC and the Justice Department have charged the principals of the hedge fund with receiving inside information. Court documents reveal a pattern of self-destruction at the firm, according to Marianne M. Jennings, professor of legal and ethical studies at the WP Carey School of Business at Arizona State University, writing in Thomson Reuters Checkpoint’s WG&L Accounting & Compliance Alert. (more…)

U.S. SEC says insider-trading may be a “business model” for some hedge funds

By Reuters Staff
November 6, 2009

Robert Khuzami, director of Enforcement at the Securities Exchange Commission, speaks at a news conference in Washington, June 19, 2009.    REUTERS/Joshua Roberts    (UNITED STATES CRIME LAW BUSINESS)   By Jonathan Stempel and Rachelle Younglai
NEW YORK, Nov 6 (Reuters) – A top U.S. securities regulator said some funds may now view insider trading as a central tenet of their business models, rather than as a one-time opportunity for big rewards as sometimes happened in the 1980s.

New arrests in Galleon insider-trading case

By Reuters Staff
November 5, 2009

NEW YORK, Nov 5 (Reuters) – Nine more people have been arrested in the Galleon Group insider-trading scandal, bringing to 15 the number charged in the biggest hedge fund-related case in history.