Additional charges in the FBI’s sprawling insider-trading case could be brought against alleged fraudsters “as early as this week” and this time is likely to include hedge fund employees, the Wall Street Journal reports.
So far the only people to be charged and arrested in the probe have been consultants and experts.
With four hedge funds raided in November (three were named and a fourth mystery firm was also just revealed), and countless more subpoenaed by the FBI, speculation has been mounting for weeks that it’s only a matter of time before the feds handcuff the employees at money management firms.
Every single person arrested so far has worked at one time or another for Primary Global Research, an expert network firm headquarted in California.
Winifred Jiau, James Fleishman, Walter Shimoon, Don Chu – they’ve all been charged with providing insider tips on tech companies, which hedge funds then traded on. So we’re guessing that if hedge fund employees are charged, they will be connected to the experts who have already been arrested – all of whom were accused of tipping portfolio managers in the FBI complaints against them.
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