The Independant – Insiders at the Securities and Exchange Commission, the Wall Street watchdog, and at the Justice Department say that there are more civil charges and more criminal prosecutions in the offing. Hedge fund managers need to learn to spot the difference between scouring every possible source for trading ideas, and out-and-out insider dealing, and they had better learn fast.

The question now is whether the hedge fund industry is hooked on insider trading, whether the Galleon case is a singular one starring some really rotten apples – or whether, as Mr Rajaratnam was insisting to his staff and investors yesterday, he has been unfairly accused.

It was only a matter of time until Mr Rajaratnam or someone like him ended up in the dock. It is difficult to imagine he will be the last.

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Tags: hedge, industry, wall street, watchdogs

Bloomberg – Pequot Capital Management Inc., once the world’s biggest hedge-fund manager, was cited in at least 44 private reports from exchange watchdogs in the past four years alerting U.S. regulators to potential insider trading, market manipulation or other misconduct, government documents show.

Trades linked to Google Inc., Cox Communications Inc., International Securities Holdings Inc., Premcor Inc. and dozens of other companies prompted surveillance units policing U.S. exchanges to make the referrals to the Securities and Exchange Commission, according to agency records obtained by Bloomberg News. Thirty-six reports flagged possible insider trading. Four indicated possible manipulation and four were labeled “other.”

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Tags: bloomberg, capital-management-inc, cox communications, cox communications inc, google, google inc, government documents, hedge-fund-manager, insider trading, international securities, market manipulation, pequot capital management, pequot capital management inc, premcor inc, private reports, regulators, securities-and-exchange, securities-and-exchange-commission, surveillance units, watchdogs