News, analysis and personal reflections on the markets & the financial sector

Friday, May 15, 2009

FBI Investigates 2 SEC Attorneys

Two enforcement lawyers at the Securities and Exchange Commission are being investigated by federal prosecutors and the FBI for possible insider-trading violations, according to a report from the SEC's inspector general.

The criminal investigation, which was disclosed to SEC Chairman Mary Schapiro in a March 3 memo, came about after SEC Inspector General H. David Kotz conducted his own investigation into the matter and referred it to criminal authorities after discovering suspicious trading activity.

The names of the two attorneys were redacted from the report, but Kotz said he has also recommended that disciplinary action be taken against them.

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