Largest-ever insider trading probe targets Goldman Sachs
2010 11 23

From: rawstory.com


Insider-trading charges are being prepared against a vast network of consultants and traders across the US financial industry in a years-long probe that a report suggests will reveal a pervasive culture of backroom dealing.

The investigation could be the largest insider-trading probe in US history, The Wall Street Journal said Saturday citing people close to the issue, with federal officials examining if multiple, organized insider-trading rings reaped illegal profits of tens of millions of dollars.

Some charges could be brought before the end of the year, the Journal said.

The criminal probe is examining some three dozen companies in the probe, which is examining the "expert networks" to clients such as hedge funds and mutual funds, which connected managers of companies with investors in a bid to offer inside tracks on financial deals, according to the report.

Highlighting a focus on insider-trading by the Manhattan US attorney Preet Bharara, the Journal noted he has called the issue a "top criminal priority" for his post.

"Illegal insider trading is rampant and may even be on the rise," Bharara warned in a speech last month.

Pinpointing over a dozen companies based on both US coasts, the Journal reported that a federal grand jury in New York has already heard evidence in parts of the criminal probe.

Among those being investigated, the newspaper said prosecutors were examining whether bankers with the Goldman Sachs Group leaked information about transactions, including health-care mergers, in a bid to benefit investors.

Inside traders are generally known to profit after being tipped off on deals ahead of time -- for example, giving them an opportunity to buy stocks before acquisitions, and then selling them after the shares rise in value.

As well as large financial firms like Goldman Sachs, the investigation is also examining independent analysts and research houses for providing non-public information to hedge funds. The report suggest the three-year probe has involved wiretapping the telephone conversations between consultants and investors.

In one case, a leading analyst at the small Oregon-based Broadband Research wrote to clients on October 26 explaining the firm was under investigation.

Analyst John Kinnucan, in an email sent to two hedge funds and two mutual funds and that was obtained by the Journal, said FBI agents had attempted to get him to help with the probe.

The officials were "thoroughly convinced that my clients have been trading on copious inside information," Kinnucan wrote.

"(They obviously have been recording my cell phone conversations for quite some time, with what motivation I have no idea.) We obviously beg to differ, so have therefore declined the young gentleman's gracious offer to wear a wire and therefore ensnare you in their devious web," he wrote, according to the Journal.

In another part of the probe, trading firm First New York Securities anticipated mergers unveiled in 2009, and profited from that information, the financial daily said, citing people close to the investigation.

A spokesman for the 250-person firm acknowledged to the Journal that it was "one of more than three dozen firms that have been asked by regulators to provide general information in a widespread inquiry."

Source: rawstory.com



Related Articles
I'm doing "God's work". Meet Mr Goldman Sachs
Stripping to Pay Back Student Loans - Useless For-Profit College Education - Part-Owned by Goldman Sachs
Goldman Sachs: The Pirates of Poison in the Gulf
Cerberus: Guarding the Gates of Hell - Dynecorp, Pegasus, BP, Goldman Sachs - Gulf Oil Disaster Planned?
Goldman Sachs Sold 44% Of BP Stock 3 Weeks Before Blowout
"Vampire Squid" Goldman Sachs confesses it is being investigated for helping Greece hide its debts
Goldman: We Are Not "Vampire Squid Wrapped Around Humanity's Face"
Goldman Sachs: Record of $23 billion in bonuses for 2009; explaining their economic parasitism
Chelsea Clinton Engaged to Goldman Sachs Investment Banker
Goldman Sachs Bankers Buy Guns to Defend Against “Populist Uprising”
Goldman Sachs boss says banks do "God's work"
Is the Singularity already happening at Goldman Sachs?
Goldman Sachs behind every market crash since 1920s
Warren Buffett buys into Goldman Sachs


Latest News from our Front Page

6,000-Year-Old Temple with Possible Sacrificial Altars Discovered
2014 10 21
A 6,000-year-old temple holding humanlike figurines and sacrificed animal remains has been discovered within a massive prehistoric settlement in Ukraine. Built before writing was invented, the temple is about 60 by 20 meters (197 by 66 feet) in size. It was a "two-story building made of wood and clay surrounded by a galleried courtyard," the upper floor divided into five ...
What happened to Journalist Serena Shim? Assassinated? Find out what happened to Serena, Press TV director calls on Turkey
2014 10 21
Press TV news director Hamid Reza Emadi says the “suspicious death,” of the news channel’s correspondent in Turkey is a tragedy for “anyone who wants to get the truth.” Emadi made the remarks in an interview with Press TV on Sunday following Serena Shim’s death across the border from Syria’s Kurdish city of Kobani, where the ISIL terrorists and Kurdish fighters ...
Ancient Roman Nanotechnology Inspires Next-Generation Holograms for Information Storage
2014 10 21
The Lycurgus Cup, as it is known due to its depiction of a scene involving King Lycurgus of Thrace, is a 1,600-year-old jade green Roman chalice that changes colour depending on the direction of the light upon it. It baffled scientists ever since the glass chalice was acquired by the British Museum in the 1950s, as they could not work ...
Rapid Geomagnetic Reversal Possibility: Confirmed
2014 10 21
From the video: "The scientists who conducted the study are still unsure why the magnetic field is weakening, but one likely reason is the Earth’s magnetic poles are getting ready to flip, said Rune Floberghagen, the ESA’s Swarm mission manager. In fact, the data suggest magnetic north is moving toward Siberia." Tune into Red Ice Radio: Ben Davidson - Suspicious0bservers: Space Weather ...
Georgia Guide Stone 2014 cube stone removal
2014 10 21
From: Youtube: Was it all just a gag? it seems the cube stone just happens to be made out of the same Elberton granite that the rest of this morbid monument is made from.
More News »