FT: FBI Probes into Insider Trading Up 43%

Thursday, 04 Oct 2012 07:51 AM

  Comment  |
   Contact Us  |
|  A   A  
  Copy Shortlink
Federal Bureau of Investigation probes into insider trading rose by an annualized 43 percent in the fiscal year ending Sept. 30, the Financial Times reported.

The spike follows the biggest crackdown on insider trading since the 1980s, the Times added, noting that since 2009, criminal charges have been filed against 72 hedge fund traders, company insiders and consultants.

High profile convictions have included Raj Rajaratnam, the founder of Galleon Group, and Rajat Gupta, a former director of Goldman Sachs.

Editor's Note: Economist Unapologetically Calls Out Bernanke, Obama for Mishandling Economy. See What They Did

The FBI is working with financial regulators to identify and take out inside traders.

More charges are coming down the pipeline, the Times reported.

Rajaratnam, a billionaire in a former life, is serving an 11-year prison sentence, though he plans to appeal his conviction.

A federal appeals court will hear oral arguments on Oct. 25, according to Reuters.

Rajaratnam was convicted 2011 on 14 counts of securities fraud and conspiracy, after a jury heard FBI secret recordings of his conversations.

Wiretaps are normally used to prosecute organized crime figures and drug traffickers, though their use in insider trading cases reflects an increased interest by the FBI to go after financial crimes.

Meanwhile, Rajiv Goel, a former Intel executive and friend and associate of Rajaratnam, avoided prison time in the case by testifying against the disgraced hedge fund giant.

“I had a serious lapse of judgment and good sense and I deeply apologize ... I hope that I am given another chance to repair the harm that I have caused,” Goel told a judge, Reuters reported.

Although he avoided jail time, Goel was given probation.

Editor's Note: Economist Unapologetically Calls Out Bernanke, Obama for Mishandling Economy. See What They Did

© 2014 Moneynews. All rights reserved.

  Comment  |
   Contact Us  |
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
Zip Code:
Privacy: We never share your email.
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

Steve Case: eBay's Split With PayPal Could Make Both Takeover Targets

Tuesday, 30 Sep 2014 12:36 PM

After months of prodding by activist investor Carl Icahn, eBay has decided to split PayPal and the rest of the company i . . .

Bill Gates Retains Top Spot in Forbes 400

Tuesday, 30 Sep 2014 11:59 AM

Microsoft co-founder Bill Gates ranks No. 1 in the Forbes 400 list for the 21st straight year, with a net worth of $81 b . . .

Study: Recessions Can Postpone Motherhood Forever

Tuesday, 30 Sep 2014 09:24 AM

When the economy tanks, women have fewer babies. But what happens in the following years, when conditions improve?A mass . . .

Most Commented

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

America's News Page
©  Newsmax Media, Inc.
All Rights Reserved