The SEC has charged a father-son team with conducting “a serial insider trading scheme,” in which the son tipped off his father about lucrative merger and acquisition deals and the father communicated the information to a trader using golf terminology, officials say. The SEC alleges that Sean R. Stewart, an employee at Perella Weinberg Partners,… Read More >>
Congress Mulls New Insider Trading Rules
Congressional calls for broadening the definition of insider trading and making it easier to prosecute have picked up speed recently. But it remains to be seen just what the legislative branch’s impact will be on an area traditionally ruled by the courts, industry observers say. Two bills are currently being considered by Congress, both responses… Read More >>
Aite: Spending on GRC Systems to Hit $400M
A federal appeals court on Wednesday overturned two convictions resulting from the government’s high-profile insider trading crackdown, a move that could make it much harder to prosecute such cases going forward. Nonetheless, firms are investing heavily in governance, risk and compliance (GRC) software systems. In fact, market research firm Aite Group expects compliance technology spending… Read More >>
Galleon PM to Pay $840K to Settle SEC Charges
The SEC reports that former hedge fund portfolio manager Rajarengan “Rengan” Rajaratnam has agreed to pay more than $840,000 and accept securities industry bars in order to settle the agency’s insider-trading case brought against him for “his role in the widespread insider-trading scheme conducted by his brother Raj Rajaratnam and hedge fund advisory firm Galleon… Read More >>
Greed, Governance and the Trust Factor
Good governance is a watchword of today’s financial services industry. But are the new regulations and requirements enough to restore trust? The public’s trust in the industry “languishes at about the 24 percent level, with many expressing continued concerns regarding both excessive compensation and a lack of integrity among top corporate managers,” SEC Commissioner Luis… Read More >>
SEC’s New Sheriff vs. the D.C. Corral
Mary Jo White’s SEC appears to be taking decisive action against the alleged, undeclared insider trading and controversial influence peddling that Congress has taken for granted for decades. This became abundantly clear when the regulator set its sights on 44 firms that allegedly benefited from Washington, D.C.-based insider trading. Over the coming weeks and months,… Read More >>
SEC to Probe 44 Firms for Insider Trading
The number of hedge funds, asset management and other investment firms under suspicion in a SEC insider-trading probe involving an alleged Congressional tip-off recently expanded to 44, giving it the potential to become the largest insider-trading case of all time. The probe, which involves “some of the largest hedge funds and asset management advisers in… Read More >>
SAC Capital Admits Guilt, Faces $1.8B Fine
The SAC Management Companies, based in Stamford, Conn., will plead guilty on all counts of the criminal indictment for securities fraud and wire fraud that were part of a large-scale insider trading scheme, according to government officials who made the announcement on Monday, Nov. 3. The affiliated hedge fund companies were founded by adviser Steven… Read More >>
