Hedge fund managers arrested for insider trading case

February 9th, 2011 - 2:05 am ICT by Aishwarya Bhatt  

New York, Feb 8 (THAINDIAN NEWS) The US Justice Department has charged four hedge fund managers of insider trading.

The four people charged after the massive investigation are Noah Freeman, Donald Longueuil, Samir Barai and Jason Pflaum. Freeman has pleaded guilty and is currently cooperating with the investigators as they seek to unravel what could become the biggest hedge fund crime in the history of the United States.

Freeman is alleged to have “obtained material non-public information from certain co-conspirators who worked at publicly traded companies or hedge funds, for the purpose of extracting profitable trades on the basis of the inside-information.”

Barai and Longueuil were arrested this morning. Pflaum has however pleaded guilty and has made a deal with the prosecutors to cooperate with the investigation.

Several hedge fund companies were raided last year in a massive hedge fund investigation by the Securities and Exchange Commission. Several hedge fund managers are expected to be arrested subsequently.

The SEC last year stumbled upon information that suggested that most hedge fund managers were illegally profiting from listening in on insider trading. That sparked the investigation that resulted in the raid of several hedge fund companies.

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