Institutional investors, hedge funds, and analysts are using increasingly clever techniques to obtain valuable corporate information before anyone else. Now the Securities and Exchange Commission is taking notice.
First, in January the SEC charged more people and entities in its now-notorious SEC v. Galleon insider-trading probe, including a New York hedge fund advisory firm, the firm's hedge fund manager, an analyst at the fund, and others who allegedly tipped inside information on a client that allowed the hedge fund to enhance its trading strategies. Then in a separate probe in February, the SEC charged six “expert network consultants” with insider trading ...