Inside the Insider Trading

Another Insider Trading Scandal is Uncovered

The hedge fund sector is a little on edge lately, due to the investigation that inspired the recent flood of subpoenas received by the top companies. If what is suspected is actually true, it appears to be a massive, long-term program of trading fraud that brings to mind images of organized crime during its heyday, back in the 1950s. If charges are formerly brought down it will undoubtedly send trimmers throughout the trading community.

The hedge fund sector is a little on edge lately, due to the investigation that inspired the recent flood of subpoenas received by the top companies. If what is suspected is actually true, it appears to be a massive, long-term program of trading fraud that brings to mind images of organized crime during its heyday, back in the 1950s. If charges are formerly brought down it will undoubtedly send trimmers throughout the trading community.

The last thing the financial markets need is another fraud scandal. This case brings to mind the ultimate rogue Wall St. trader, Gecco, played by Michael Douglas for the Movie "Wall Street". We could really do without the resurgence of fraud and unethical behavior in this industry, as our economy and the American people struggle out of the financial hole.

The Manhattan U.S. Attorney’s office sent out subpoenas to major hedge fund companies, including giants such as Capital Advisors and Citadel, Janus Capital Group and Wellington Management, one of the largest institutional – investment firms. Further, the FBI questioned a Global Research, LLC account manager in an effort to gain clarity on the relationship Global Research has with the hedge fund community and what role they may have played in the insider trading scam being investigated. The Wall Street Journal reported that Apple analysts were also being "dragged" into the investigation. The 3-year investigation concerns an expert-network firm that leaked nonpublic/proprietary information to the Hedge Funds and others. The details are still to come, but it does not bode well for the public perception.


Check an interview about the perception of systemic fraud, particularly insider trading in hedge funds.




Back to Homepage

K. Reilly
Cohn-Reilly Report / News Flash