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Feds in New York now have charged 14 money managers, attorneys, and other investors with insider trading in a case stemming from the Galleon Group hedge fund which is roiling the hedge-fund world.  Law Professor Elizabeth Nowicki, a former SEC attorney and Wall Street lawyer, says it’s disappointing to see so many people who were trusted by investors allegedly betray that trust.

“Normally charges in an insider trading situation are hard to bring, and often the higher-level players avoid criminal charges because there are no smoking guns. In this case, the participants in the fraud were incredibly bold in their dealings with each other, such that the government has a good trail to use to bring charges.”

Contact Elizabeth Nowicki, 617-353-2807, enowicki@bu.edu