Seven Men Charged of Insider Trading in the US

Seven men have been accused of being involved in an insider trading scheme in the US. This group of men has been charged with forming a team of co-workers and friends who made about $62 million through Dell Inc. shares’ insider trading. Among the accused, are analysts and fund managers.

Preet Bharara – Insider Trading Ring Includes Investment Firms and Hedge Funds

US attorney, Preet Bharara commented on the white collar crime. According to him, it is an example of a grand level organized crime. The insider trading ring included 5 different investment firms and hedge funds – the largest scheme to have been involved in one stock, according to reports by the federal authorities. The alleged include California based Whittier Trust Co’s fund manager Danny Kuo, a New York based hedge fund analyst Jon Horvath and a former portfolio manager of Diamondback Capital Management LLC Todd Newman. These men have been taken into custody, according to Federal Bureau of Investigation’s head, Janice Fedarcyk’s report.

Preet Bharara added that the crime involves a group of friends who formed a club. The sole motive of the club was to make profit. The club members had been involved in a business of bartering inside information.

Profits Earned through Scheme of Same Magnitude as Galleon Group Insider Trading Scheme

Bharara pointed out that the profit earned through the scheme is of a similar magnitude as the insider trading scheme of the Galleon Group. Bharara’s office had been involved in a 5-year old probe of insider trading at the Galleon Group. Charges were brought against more than 63 people and about 50 pleaded guilty in the trial. Galleon Group LLC’s co-founder was also convicted for his involvement in the case. He is serving 11 years in imprisonment.

To discuss crimes of this level, get a consultation with San Francisco criminal lawyer, Christopher Morales.