US authorities prepare insider trader charges, report reveals

23 November 2010

The authorities in the US are thought to be preparing to file charges of insider dealing against a large number of traders, financial consultants and investment managers, a news report has said.

According to the Wall Street Journal, which cited sources familiar with the matter, the filing of the charges would be the culmination of a three year investigation by the Federal Bureau of Investigation, the Securities and Exchange Commission and the US Attorney’s office.

One of the main focuses of the probe has been on whether networks of expert consultants passed on non-public information between each other to inform trades.

Preet Bharara, Manhattan US Attorney, is believed to be one of the main leaders of the investigation, which alleges that inside information was used to make millions of dollars from trades.

During a speech in October, Mr Bharara, who was quoted by the Wall Street Journal, described insider trading as a “top criminal priority” and added: “Illegal insider trading is rampant and may even be on the rise”.

Bankers at Goldman Sachs are also thought to be under investigation as part of the probe, the news provider claimed.

Regulators are assessing whether executives from the investment bank leaked non-public information surrounding various transactions.

By Jim Ottewill

Become a bobsguide member to access the following

1. Unrestricted access to bobsguide
2. Send a proposal request
3. Insights delivered daily to your inbox
4. Career development