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Seven more charged with insider trading
Raj Rajaratnam is in jail serving an 11-year sentence, but the historic insider trading investigation that landed him there isn’t going away.
Demonstrating its staying power, the case rolled ahead this week as seven more professionals were charged with insider trading. The accused include Level Global Investors co-founder Anthony Chiasson, who has surrendered to authorities, Todd Newman, formerly of Diamondback Capital Management and Jon Horvath of Sigman Capital, a unit of SAC Capital. The criminal case was built with the help of up to three people in the probe who have pleaded guilty already and have turned into witnesses.
One of the cooperating witnesses apparently worked at Dell Computer and obtained inside information from employees there. I wouldn’t say any of these people are really big fish, though some of the crimes involved huge sums. Prosecutors says the illegal trading generated more than $60 million in profit. They also say the probe is going strong, leading us to believe that more arrests are coming. The arrest of Newman and Horvath reignited debate about whether SAC Capital is a target, though neither the firm nor founder Steve Cohen have been charged with any crimes.
The charges against Horvath mark the first time a current employee of SAC Capital has been charged. Some may think the pressure may be building on SAC Capital. It’s fair to assume that the FBI is leaving few stones unturned when it comes to SAC Capital.
For more:
- here’s the article
Related articles:
Trader pleads guilty to illegal trading
Three insider trading arrests on deck




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