The jury may still be out on Galleon founder Raj Rajartnam, but the $10 billion hedge fund Millennium Partners has delivered its own verdict on the ‘expert networks’ at the heart of the feds' insider-trading probe—it is no longer using them.
According to FOX Business Network, Millennium Partners and “many other hedge funds” have become wary of the networks, which are implicated in the Rajartnam case. The network says the funds fear “even a remote connection to insider trading.”
That said, a source close to the Millennium fund told FOX the fund could change its mind, depending on future developments.
Expert networks have been at the center of a wide-ranging federal probe into insider trading that has resulted in admissions of guilt from about two dozen individuals to date.