Forbes – If a new report about hedge fund corruption is to be believed, the industry is overrun with unethical and illegal activity. Some 46% of people at hedge funds believe their competitors break the law or act unethically and 30% say they’ve seen wrongdoing themselves. Less than a week after F.B.I. agents handcuffed SAC Capital portfolio manager Michael Steinberg and escorted him from his Park Avenue apartment, the report, released yesterday, says that more than a third of hedge fund professionals believe they have to break the rules to get ahead.
The report was released by New York law firm Labaton Sucharow, which specializes in representing plaintiffs in securities class action cases and whistleblower actions, together with HedgeWorld, a news and research service, and the Hedge Fund Association, a trade group. They commissioned an anonymous online survey of 127 hedge fund professionals conducted between Feb. 25 and March 17.