SEC catches up with tipped hedge fund advisors

The jig is up for yet another hedge fund advisory firm in the U.S. engaged in insider trading.

This case involves closely associated members of a network of hedge fund traders who illegally obtained material not-for-public information concerning tech firms Dell, Inc. and Nvidia Corporation.

It started back in 2008 where the traders allegedly exchanged information with others and reaped massive profits from trading on that. A neat little scheme until the slow-but-long arm of the SEC caught up with them.

Considering the rate at which the regulators around the world are cracking insider trading cases, one wonders if their threat of punishment is ever a sufficient deterrent.

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.