Is High-Frequency Trading a Crime?

Last Friday, U.S. Attorney General Eric Holder appeared before a congressional hearing and told the congressional representatives that the Justice Department was looking into the practice of high-frequency trading to determine whether the practice violates insider trading laws.  This is an issue that the Securities and Exchange Commission and the Federal Bureau of Investigation are […]

Government Wins First Jury Conviction in SAC Prosecution

A jury in federal district court in New York yesterday returned a guilty verdict against Michael Steinberg, a senior official at the giant hedge fund, SAC Capital Advisors, LP. A grand jury had indicted Steinberg on charges of insider trading. Previously, six other SAC employees and the firm itself have pleaded guilty to criminal charges […]

SEC Loses Insider Trading Suit against Mark Cuban

The Securities and Exchange Commission threw up an air ball in its shot to hold Dallas Mavericks owner Mark Cuban liable on insider trading charges. After a two week civil trial in Dallas, the nine person jury, after a mere four hours of deliberation, found against the SEC in its civil suit alleging that Cuban […]

New Investigation of Hedge Fund

Today, The New York Times is reporting that Samir Barai and his hedge fund Barai Capital Management is under investigation for insider trading (http://dealbook.nytimes.com/2011/01/31/another-hedge-fund-linked-to-insider-trading-inquiry/?ref=business). The report says that the Federal Bureau of Investigation executed a search warrant at Barai Capital last November. The investigation is associated with a criminal complaint against Winifred Jiau. In December […]

First SEC Insider Trading of Default Swaps Case Goes to Trial

For the first time the Securities and Exchange Commission is bringing to trial an insider trading case based on credit default swaps. The case is taking place in the United States District Court for the Southern District of New York in Manhattan. It will be a bellwether for the handling of these types of cases […]

Wire Taps Lead to Insider Trading Charges

A federal grand jury in the Southern District of New York brought insider trading charges against six individuals, including a billionaire hedge fund operator and executives of major corporations. The indictment alleges that Raj Rajaratnam, a billionaire who operates the $7 billion Galleon Group hedge fund, Rajiv Goel, manging director of strategic investments at Intel […]

JPMorgan Closely Monitoring Cioffi and Tannin Trial

Months before Lehman Brothers collapsed, Bank of America acquired Merrill Lynch, and the securities markets came to the precipice of disintegration, JPMorgan Chase acquired Bear Stearns. The acquisition took place in March 2008 for $10 per share. As is common in acquisitions through stock purchases, JPMorgan also acquired Bear Stearns’s potential liabilities including those arising […]

SEC Charges Six with Insider Trading in Miami Acquisition

The Securities and Exchange Commission has filed a complaint in federal court in Miami alleging insider trading by six individuals. The trades involved the stock of the Neff Corporation. In early 2005 Neff agreed to the acquisition offer of Odyssey Investment Partners, LLC. Several individuals with knowledge of the upcoming merger purchased Neff stock prior […]

Court Upholds Conviction of Qwest Ex-CEO

The 10th Circuit Court of Appeals has upheld the insider trading conviction of former Qwest CEO Joseph Nacchio. The decision reinstates the federal conviction of April 2007, in which a jury found Nacchio guilty of 19 counts of insider trading. In March of 2008, a three judge panel of the 10th Circuit vacated Nacchio’s conviction […]

Subprime Mortgage Meltdown Enforcement and Civil Litigation Heating Up

All levels of government are becoming involved in responding to the subprime mortgage meltdown. In addition private litigants are beginning to file legal actions. The federal government’s enforcement response will be spearheaded by the Securities and Exchange Commission and the Department of Justice. The SEC has created a subprime task force to investigate cases associated […]