The government intends to continue to pursue civil and criminal legal action against insider trading and other financial wrongdoing according to SDNY U.S. Attorney Preet Bharara. Mr. Bharara made these comments in a speech where he was unabashedly forceful in arguing that the government will not take a back seat to investigating insider trading and financial fraud.
Mr. Bharara made it very clear that, in his opinion, insider trader is rampant in the United States capital markets, and that his office would continue to investigate this particular area. He highlighted recent successes in the Galleon matter, as well as other cases. Further, he also indicated that cyber crime was receiving as much government attention as the insider trading investigations, and he believed that those cases were developing because various federal agencies, including the FBI, CIA and the Secret Service, were involved.
The DOJ and, in particular, the SDNY U.S. Attorney’s Office will continue to aggressively investigate and prosecute these financial fraud matters. However, one begins to wonder if their successes will meet the same fate as those of a former SDNY U.S. Attorney by the name of Rudy Guiliani where his high profile insider trading cases ended up overturned by the appellate courts.