Wednesday, April 6, 2011

Things You Shouldn't Say Over the Telephone if You Think the FBI is on to Your Insider Trading

WSJ has a pretty good blow-by-blow of the comments the FBI recorded when one trader using inside information decided to discuss things over the phone (duh) when he suspected the FBI was closing in.

It should be noted that one of the insiders that was charged today, unlike in many of the other cases brought by the DOJ, had an ethical obligation not to discuss the cases. The insider, Matthew Kluger, worked for a number of prominent law firms, who certainly didn't want Kluger revealing confidential client information. But that should be a civil matter between Kluger and the law firms. Nothing really for the FBI and DOJ to do in these cases. There focus should be limited to insider trading cases that involve government officials.

WSJ's report is here.

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