U.S. in Vast Insider Trading Probe

(As always I did a search and nothing came up. If this has been posted please lock / delete).

U.S. in Vast Insider Trading Probe

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.

Looks like Goldman-Sachs is involed as well.

In another aspect of the probes, 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.

The number of companies involved in this is going to continue to grow, and the list already includes some top firms in the NAtion including:

Schering-Plough Corp
MedImmune Inc
AstraZeneca
Goldman
Medical Optics Inc
Abbott Laboratories
Ziff Brothers
Jana Partners LLC
TPG-Axon Capital Management
Prudential Financial Inc.'s
Jennison Associates asset-management unit,
UBS
AG's UBS Financial Services Inc.
Deutsche Bank AG,


As far as Hedge fund managers go -

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.

Prosecutors also are investigating whether some hedge-fund traders received inside information about Advanced Micro Devices Inc., which figured prominently in the government's insider-trading case last year against Galleon Group hedge fund founder Raj Rajaratnam and 22 other defendants.

Fourteen defendants have pleaded guilty in the Galleon case; Mr. Rajaratnam has pleaded not guilty and is expected to go to trial in early 2011.

Among those whose AMD transactions have been scrutinized is hedge-fund manager Richard Grodin. Mr. Grodin, who received a subpoena last fall, didn't return calls. An AMD spokesman declined to comment.

This should get interesting.

You can bet it will be interesting but you can count on the really big fish getting away. This is going to be one of those occasional government media circus events to convince the public that they still catch "the bad guys".
Sure, they'll be genuine crooks alright but not the top execs of Goldman sachs to be sure.
In the process, they'll help weed out the competition for the really big scumbags that never see the inside of a courtroom.
Government looks good, the people have their bloodthirst sated and the media makes their money too.
It's a start anyway!

Thanks for posting this.

reply to post by Asktheanimals


I don't think so in this case. The Feds have been investigating this for the last 3 years, which tells me the water is deep and they are going for a conspiracy / RICO issues. Keep in mind Enron was taken to task for their actions, which in the end sank them and resulted in jail time for the bigwigs.

3 years, a few indictments alreay, and a lot of large companies pulling the no comment answer...