Hedge fund managers arrested in insider case

[Joanne98]

Source: Reuters

Two hedge fund managers were arrested on insider trading charges on Tuesday, while another portfolio manager and an analyst agreed to plead guilty in connection with the probe, the latest development in a broad investigation of hedge funds' trading activities.

The charges were announced by federal prosecutors, who are investigating the ties between hedge funds and consultants for so-called expert networking firms that are accused of improperly leaking confidential corporate information to investors.

The latest charges involve a portfolio manager and an analyst who both once worked for hedge fund titan SAC Capital Advisors. SAC itself has not been charged with any wrongdoing.

Tuesday's charges mark the expansion of the probe beyond expert networking firm consultants and employees to hedge fund employees who allegedly were recipients of secret tips on technology stocks. Expert networking firms match industry consultants to hedge funds seeking background on certain sectors.



Read more: http://www.reuters.com/article/2011/02/08/us-hedgefunds-insidertrading-idUSTRE71739R20110208

[No Elephants]

1. Wonder who tipped the SEC?

[udbcrzy2]

2. Only two arrested? Why stop there....n/t