The following snaps flashed up on Reuters on Friday:
RTRS-U.S. SEC ENFORCEMENT CHIEF KHUZAMI SAYS SEEING SIGNIFICANT EXPANSION AS TO WHERE GALLEON/HEDGE FUND PROBE IS LEADING
16:48 06Nov09 RTRS-KHUZAMI SAYS SOME HEDGE FUND BUSINESS MODELS, LACK OF COMPLIANCE, TRANSPARENCY CREATE INCREASED DANGER OF IMPROPER ACTIVITY
16:49 06Nov09 RTRS-KHUZAMI SAYS CHANGE IN NATURE OF MARKET PARTICIPANTS, LACK OF TRANSPARENCY REPRESENT WARNING SIGNS THAT MISCONDUCT MAY OCCUR MORE FREQUENTLY
16:50 06Nov09 RTRS-KHUZAMI SAYS SOME HEDGE FUNDS USE TOOLS TO TRADE QUICKLY AND ARE ABLE TO PROFIT OFF MORE ROUTINE CORPORATE INFORMATION
The comments by Robert Khuzami — the SEC’s head of enforcement — are the strongest (on record) indication yet that Galleon was only the beginning of increasing scrutiny of hedge funds and their use of, and access to, sensitive information.
Related links:
Wall St charges highlight legal role - FT
“Octopussy” and his alleged insider trading network - FT Graphic
