Financial Times FT.com

Observers see wider hedge funds crackdown

By Joanna Chung in New York

Published: October 19 2009 21:03 | Last updated: October 19 2009 21:03

What prosecutors call the biggest insider trading case involving hedge funds is likely to implicate far more people than the six individuals who were charged on Friday.

Raj Rajaratnam, the founder of Galleon hedge fund, and present and former executives of Bear Stearns, IBM, Intel and McKinsey, were accused of either passing on or trading ahead of earnings announ­cements, acquisitions and joint venture deals involving prominent companies.

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