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FBI Reveals That It Is Investigating Pretty Much Everyone For Insider Trading

So, yeah, you're probably being probed by the Feds right now.

If it seems like there's been a lot more talk of insider trading lately, well, it's because there has been.


But the Visiums, potty-challenged Barclays bankers, and Phil Mickelsons of the world are about to have some serious company. According to Reuters, it's about to start raining windbreakers and subpoenas all over the damn place...

The FBI in New York City has undisclosed probes into about 30 suspected insider trading schemes, the agency said, in a sign investigators remains focused on building cases despite a court ruling that could curtail such prosecutions.

That's a lot of probing.

The number of probes, which has not been previously reported, comes amid a resurgence of insider trading cases, with prosecutors in Manhattan charging 11 people so far in 2016, up from just four in 2015.
The Federal Bureau of Investigation's New York office has about 50 ongoing insider trading investigations, about 30 of which have yet to result in publicly-filed charges, a spokeswoman for the agency said last week.

Cold comfort for anybody working the light side of that trading edge and worrying that they're about to get caught up in the newest trend in financial law enforcement. Especially since these probes are ongoing despite the aforementioned ruling making it a little harder to prove insider trading.

That decision said that to prove insider trading, prosecutors must establish that a trader knew the tipper received something in exchange for the tip, like a quid pro quo involving money, and that the benefit was of "some consequence."
The court rejected the proposition that merely a friendship could constitute a benefit to the tipper. As a result, Casale said agents are increasingly focused on showing the tipper received a monetary or other tangible benefit.

So it stands to reason that these aren't just "Bros helping bros" kind of deals that the FBI is looking into, meaning that even with the higher bar a lot of people out there might be misbehavin.'

But you might be asking, is there any inkling about who Preet might be showing us a chart about next?

The FBI would not comment on the details of the undisclosed probes and did not provide information on how advanced they were. Casale said some involved multiple individuals.

Oh, cagey Feds, you're no fun at all...

FBI says conducting 30 undisclosed insider trading probes [Reuters]



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