Insider Trading Investigation Nears End

By Robert Davis
Nov 21 2010

Several years’ worth of investigation in the US will come to an end according to a report on Saturday, ending one of the largest insider trading investigations in the history of the US.

FBI and other law enforcement arms have been investigating what the agencies refer to as “rampant” illegal insider trading at some of the biggest firms on Wall Street and around the country.

One of the main investigative points is the allegation that Goldman Sachs employees have been passing out information to investors on mergers in the healthcare industry. Goldman Sachs is currently the largest investment firm with a focus on healthcare related investments.

However, the FBI has said that the crimes appear to be widespread. The investigation began in 2007 and focused on Countrywide Home Loans. However, the Countrywide Home Loans investigation ended with the CEO of the now defunct company agreeing to pay fines related to the incident.

But, the current investigation is heading towards criminal charges against the players involved.

 While it was thought that it would be well into next year before the charges would be filed, the FBI has said that they have accelerated their plans and the list of charges could be filed before the end of 2010.

Investors are fearful that this latest investigation could bring down a large chunk of the investment world. The FBI has said that locating illegal insider trading has become increasingly difficult in the digital age and that their efforts have been hampered by new technology.