Today In “Web of Wall Street” Insider Trading Scandal: More Charges Coming

We spoke with a friend of ours who used to be at the SEC earlier today who told us that the charges against the “Web-of Wall Street Fourteen—you know, the one with the guys who allegedly used information stolen from UBS Securities LLC and Morgan Stanley to trade securities—might be just the “tip of the iceberg.”
It seems we’re not the only ones hearing that more charges might be on the way. We’re just the only ones hearing it on Wednesday. On Monday, Time Magazine was already speaking to a source at the SEC.

He added that "numerous" so far unnamed individuals are or would likely come under investigation, and that a decision on charging them would be clearer "in the next few months." Friestad noted that insider trading investigations often scrutinize, and later charge, "family members, friends, college roommates and other social acquaintances" of those identified in the initial round of formal accusations. The SEC often tries to pressure those under investigation to cooperate with the agency.

More Insider Trading Charges?
[Time Magazine]


Art Samberg, Pequot Settle Insider Trading Charges for $28 Million

Like we told you several weeks ago, Art Samberg and Pequot Capital Management today agreed to settle insider trading charges with Securities and Exchange Commission for $28 million. The SEC Division of Enforcement's also brought a case against the alleged tipper, David Zilkha, a former Microsoft employee. That case will continue in an administrative proceeding before the Commission.