Manhattan federal prosecutors have charged 14 Wall Street professionals and lawyers, including one trader nicknamed "Octopussy" for having his hands into so many sources of information, with taking part in an alleged $20m insider-trading ring. Five of the defendants named in the charges have pleaded guilty; eight, including hedge fund managers, lawyers, traders and corporate insiders, were arrested yesterday; and a former analyst at Moody's Investors Service who is understood to live in India is still at large.
The defendants allegedly used disposable cell phones in an attempt to hide the scheme. Intercepted conversations cited in court records suggest that some of the defendants tried to make their actions look legitimate by collecting publicly available research on the transactions in case they had to show regulators why they engaged in particular trades. The charges, filed yesterday, are the latest development in an ongoing investigation by prosecutors and the Securities and Exchange
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