More proof that insider trading is a top focus of financial regulators.
WSJ: The Securities and Exchange Commission has sent at least three dozen subpoenas to hedge funds and brokerages within the past month in an expanding sweep of potential insider-trading violations, according to people familiar with the matter.
The Journal report says some of the inquiries are focused on potential information leaks around health-care mergers of the past three years, as well as retail-industry deals.
While not accused of wrongdoing, deals subject to investigations from the subpoenas include Sears Holdings Corp. aborted pursuit of home-furnishings retailer Restoration Hardware in 2007 and the role of Goldman Sachs bankers in roughly a dozen health-care deals since 2006.
That increase is consistent with the Department of Justice’s new focus on insider trading, most notably with the Galleon Group charges brought this fall.
U.S. Attorney for New York’s Southern District, Preet Bharara (pictured), said recently he’ll aggressively pursue others using wiretaps, surveillance, informants, and other tactics usually associated with organised crime investigations.
Business Insider Emails & Alerts
Site highlights each day to your inbox.