The
SEC is offering large financial bounties to insider trade
whistleblowers that expose executive insider trading, hedge fund
insider trading, private equity fund fraud, money manger insider
trading, hedge fund manager illegal trading, stock manipulation
schemes, and other violations of securities law. These insider
trading whistleblower rewards can be obtained by financial
professionals with knowledge of illegal insider trading and other
SEC violations. The SEC encourages all financial professionals
with original knowledge of executive insider trades, hedge fund
insider trades, private equity fund fraud, false misleading
information on a company's financial statements, false
information on Securities and Exchange Commission (SEC) filings,
stock manipulation schemes; embezzlement by stockbrokers;
and other securities fraud to properly expose the violations.
"Insider
trading threatens the integrity of our markets, depriving investors of
the fundamental fairness of a level playing field. To deter this
conduct and to hold accountable those who fail to play by the rules,
the detection and prosecution of those who engage in insider trading
remains one of the Division of Enforcement’s highest priorities."
"Insider
trading has long been a high priority for the Commission.
Approximately eight percent of the 650 average annual number of
enforcement cases filed by the Commission in the past decade have been
for insider trading violations. In the past two years, the Commission
has been particularly active in this area. In fiscal year 2010, the SEC
brought 53 insider trading cases against 138 individuals and entities, a
43 percent increase in the number of filed cases from the prior fiscal
year. This past fiscal year, the Commission filed 57 actions against
124 individuals and entities, a nearly 8 percent increase over the
number of filed cases in fiscal year 2010."
"The
increased number of insider trading cases has been matched by an
increase in the quality and significance of our recent cases. In fiscal
year 2011 and the early part of fiscal year 2012, the SEC obtained
judgments in 18 actions arising out of its investigation of Galleon
hedge fund founder Raj Rajaratnam, including a record $92.8 million
civil penalty against Rajaratnam personally. The SEC also discovered and
developed information that ultimately led to criminal convictions of
Rajaratnam and others, including corporate executives and hedge fund
managers, for rampant insider trading. In addition, we recently filed an
insider trading action against Rajat Gupta, a former director of both
Goldman Sachs and Procter & Gamble, whom we allege provided
confidential Board information about both companies’ quarterly earnings
and about an impending $5 billion Berkshire Hathaway investment in
Goldman Sachs to Rajaratnam, who traded on that information."
A
former director of Goldman Sachs and Procter & Gamble, stands
accused of leaking boardroom secrets about those two companies to his
friend and business associate Raj Rajaratnam, the convicted former money
manager who ran the Galleon Group, once one of the world’s largest
hedge funds.
The government depicted Mr. Gupta, a
resident of Westport, Conn., as the ultimate insider who, after running
the elite consulting firm McKinsey & Company, joined the boards of
Goldman and P.& G. As a director, he was privy to these companies’
most closely guarded secrets.
“Gupta threw away his duties, threw away his responsibilities and broke the law,” Mr. Brodsky said.
Mr.
Brodsky emphasized the ties between Mr. Gupta and Mr. Rajaratnam, who
began doing business together during the middle of the last decade. Mr.
Gupta invested in Galleon’s funds, and the two helped start a $1
billion private equity fund together.
"Facebook,
its banks and some of its biggest backers could face allegations of
insider trading if legal actions which began this week reveal
preferential treatment to certain investors in the run-up to its now
infamous $16bn stock market debut."
"A state subpoena
issued to Morgan Stanley, the lead underwriter on the Facebook IPO, and
a class-action lawsuit filed against Morgan Stanley, its IPO banking
team, the Nasdaq OMX Group and Facebook itself could land certain
investors and analysts in deeper legal difficultly, a British-based
barrister told the IBTimes UK."
"If analysts were found
to have only verbally told a select number of institutional investors
that they had revised their original share estimates before the
Facebook IPO last Friday, and those select people's share purchase
history illustrated a sizeable discrepancy with other clients, there
may be grounds to file charges of insider trading."
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