SEC Brings Expert Network Insider Trading Charges

SEC Press Release 2011-38

Date

February 3, 2011

The SEC announced the filing of civil insider trading charges against six expert network consultants and employees alleged to have illegally tipped hedge funds. The complaint alleges that four consultants at an expert network firm illegally tipped information to hedge funds and other clients of the expert network. In addition, the complaint charges two employees of the expert network for acting as "conduits" by receiving inside information and relaying it to clients.

Please contact any of the following Cadwalader attorneys if you have any questions about this item:

Steven Lofchie; [email protected]

Bradley Bondi; [email protected]

Jonathan Hoff; [email protected]

Glen Barrentine; [email protected]

Cross References

SEC Litigation Release 21836

SEC Complaint

CWT C&F Memo: Expert Networks and Insider-Trading Probes (Dec. 21, 2010)

Exchange Act § 10(b)

Exchange Act Rule 10b-5

Securities Act § 17(a)