With New Firepower, S.E.C. Tracks Bigger Game
(Tim Shaffer/Reuters) Daniel M. Hawke, chief of the Securities and Exchange Commission‘s market abuse unit.
By BEN PROTESS and AZAM AHMED, NYT
9:17 p.m. | Updated A corporate lawyer, a professional trader and an anonymous middleman carried out a lucrative insider trading scheme for nearly two decades, baffling federal authorities who were trying to unravel the mystery. Like characters in a crime novel, the three men evaded arrest by dumping cellphones, using code names and rendezvousing in Atlantic City to divide their bounty.
Then last year, authorities found the culprits. Relying on new tools, investigators at the Securities and Exchange Commission traced the conspiracy to Matthew H. Kluger, Garrett D. Bauer and Kenneth T. Robinson. In April, the three men, who have all pleaded guilty to criminal charges, agreed to pay the S.E.C. roughly $32 million.
Embarrassed after missing the warning signs of the financial crisis and the Ponzi scheme of Bernard L. Madoff, the agency’s enforcement division has adopted several new — if somewhat unconventional — strategies to restore its credibility. The S.E.C. is taking its cue from criminal authorities, studying statistical formulas to trace connections, creating a powerful unit to cull tips and assign cases and even striking a deal with the Federal Bureau of Investigation to have agents embedded with the regulator.
(More here.)
9:17 p.m. | Updated A corporate lawyer, a professional trader and an anonymous middleman carried out a lucrative insider trading scheme for nearly two decades, baffling federal authorities who were trying to unravel the mystery. Like characters in a crime novel, the three men evaded arrest by dumping cellphones, using code names and rendezvousing in Atlantic City to divide their bounty.
Then last year, authorities found the culprits. Relying on new tools, investigators at the Securities and Exchange Commission traced the conspiracy to Matthew H. Kluger, Garrett D. Bauer and Kenneth T. Robinson. In April, the three men, who have all pleaded guilty to criminal charges, agreed to pay the S.E.C. roughly $32 million.
Embarrassed after missing the warning signs of the financial crisis and the Ponzi scheme of Bernard L. Madoff, the agency’s enforcement division has adopted several new — if somewhat unconventional — strategies to restore its credibility. The S.E.C. is taking its cue from criminal authorities, studying statistical formulas to trace connections, creating a powerful unit to cull tips and assign cases and even striking a deal with the Federal Bureau of Investigation to have agents embedded with the regulator.
(More here.)
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