FBI Building Insider-Trading Cases Against 120 People

Feb 28 2012 | 5:35am ET

The U.S. Justice Department has charged more than 60 people during its three-year-long crackdown on insider-trading. But that, it seems is only the beginning.

Authorities are working to build cases against twice as many people still, with about 120 people in the crosshairs as targets, The Wall Street Journal reports. And that figure is just half of the 240 people that the government is investigating, hedge fund managers among them.

"We've identified them, and now of course we have to build a case around that," the Federal Bureau of Investigation's David Chaves said. The roughly 120 "subjects"—the half of those under investigation whom the Feds do not necessarily believe have broken the law—could be asked to assist in the investigation, Chaves, who heads one of the two teams running operation "Perfect Hedge," added.

Federal prosecutors have won 57 convictions or guilty pleas. A total of 66 people have been charged with insider trading over the past two-plus years.


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Chicago-based independent futures brokerage and clearing firm R.J. O’Brien & Associates (RJO) has hired industry veteran Daniel Staniford as Executive Director, responsible for the firm’s institutional business development in New York and London.

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