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IPFS News Link • Government

How the Feds Pulled Off the Biggest Insider-Trading Investigation in U.S. History

• http://www.bloomberg.com

For more than seven years, the U.S. government has relentlessly prosecuted Wall Street traders who used inside information to rake in hundreds of millions of dollars in profits.

Federal prosecutors in New York have racked up 91 convictions and collected almost $2 billion in fines. In the latest action on May 19, the government looked beyond Wall Street, accusing a legendary Las Vegas gambler of profiting from insider tips.

Here's a by-the-numbers look at what happens when the Feds get serious about insider trading.

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What did they do?

Dozens of traders got leaks from company insiders to win a trading edge in the market. In some cases, traders paid cash to their tipsters. In other cases, facilitators who were paid a fee acted as middlemen putting the two groups in touch.

Some of the most desired information: data about tech companies and drug trials.

Profits were enormous at times. Roomy Khan, a former Intel executive, collected $50 million while working as a trader.

Few did it all on their own.


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