FBI Scours Social Media In Insider Probe

Nov 28 2012 | 1:04am ET

Would-be hedge fund insider-traders had better beware their Twitter feed.

The Federal Bureau of Investigation is taking a long, hard look at Twitter and other social media as part of its crackdown on insider-trading, two agents said. The Feds are on the lookout for tips that may be exchanged on such networks.

"I will tell you technology will play a huge part, social media, Twitter," April Brooks, head of the FBI's New York field office and a member of the "Operation Perfect Hedge" team that has won more than 60 insider-trading convictions, told Reuters TV. "Any kind of technology that is new and doesn't exist today, if there is any way to exploit it, these individuals will exploit it."

Brooks and another FBI agent, David Chaves, stressed that the agency isn't unfairly focusing on hedge funds in the insider-trading probe, and isn't attacking the industry to distract attention from the lack of prosecutions stemming from the financial crisis. "There may be others who are responsible, but who don't necessarily violate the federal statutes."

"The message is we are our there, and we are going to be out there," Brooks added. "This type of violation, this type of crime, impacts everyone."

And even as the number of people charged with insider-trading crimes in recent years nears triple digits, the FBI isn't resting on its laurels.

"Some view insider trading as reaching this crescendo, and we have reached a top," Chaves said. "I would suggest we have not."


In Depth

Why Ponzi Schemes Work: An In-Depth Look At The Allen Stanford Fraud

Dec 21 2014 | 10:30am ET

Texan Allen Stanford first appeared on the radars of financial regulators in 1997...

Lifestyle

Hedgie Funds US Squash Program

Dec 24 2014 | 8:46am ET

Squash, anyone?

Guest Contributor

EidoSearch’s Top Three Market Projections For 2015

Dec 23 2014 | 4:03am ET

It is that time of year again when prognosticators make their big market calls for...

 

Sponsored Content

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

December 2014 Cover

Futures 2014 person of the year

Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.