- Improper US Government Payments Hit $98 Billion
- Rally's Low Volume Prompts Question: Whither Buyers?
- Microsoft Ordered to Stop Some Windows Sales in China
- Former Merrill CEO Thain Defends Wall Street Bonuses
- Obama to Continue Yuan Rhetoric, Visit Great Wall
- Boats Seized in Madoff Scandal Sell for $2 Million
- 15 Richest Members of Congress
- House Leaders Want Job Creation Bill Before Year-End
- Economy, Stocks to Grow Faster Than Many Think: ING
- Best Sector Plays for 2010: Citi's Levkovich
- Pulse of Private Equity
- Abbott, Arbiter & Avoidance
- Can YouTube Revolutionize Citizen Journalism?
- I Have to Leggo My Eggo
- Appraisals Now Center Stage in Housing Recovery
- Expect Stocks to Rise 15-20% by Mid-2010: Chief Investor
- Profiting from This Volatile Options Expiration Week: Analyst
- Nov. 17: Unusual Volume Leaders
MOST SHARED
- Maybe A Correction Isn't Coming?
- Obama Creates Task Force to Fight Financial Crime
- Economy Will Grow at 'Muted Rates': Blackstone CEO
- Vietnam Internet Users Fear Facebook Blackout
- Street Fight: Amazon Vs. Walmart
- The Richest Members of the US Congress
- Want a 1,293% Gain?
- China Should Watch for Asset Bubbles: Central Bank Official
- Chocolate Wars Heating Up
- Housing Market Can't Recover Without US Support: Experts
Text Size 
Federal prosecutors in the Galleon Group case have sent a subpoena to a former employee of SAC Capital Advisors, a sign that the scope of the probe into the largest hedge fund insider trading case in history is expanding, the Wall Street Journal reported, citing people familiar with the matter.
The subpoena seeks trading records from Richard Grodin, a former SAC hedge fund manager who employed a cooperating witness in the insider trading case announced last week, the Journal said.
Grodin left SAC in January 2004, said SAC spokesman Jonathan Gasthalter. Legendary trader Steven Cohen founded SAC, a Stamford, Connecticut-based hedge fund.
The Journal reported that the subpoena does not suggest wrongdoing. Nor does it suggest that Cohen -- one of the nation's most well known and successful hedge-fund managers -- has been implicated in the scandal.
Neither Galleon nor Grodin could be immediately reached to comment.
Last week, federal investigators brought criminal charges against Galleon founder Raj Rajaratnam and five others in the largest hedge fund insider trading case in history.
Galleon, which managed $3.7 billion at the end of last week and boasted strong returns through September, has told investors it will wind down its funds.
The trading scandal has also entangled big names such as Intel [INTC
Loading...
()
], consulting firm McKinsey & Co, IBM [IBM
Loading...
()
], and rating agency Moody's.
According to regulators' complaints, an employee at investor relations firm Market Street Partners tipped off a Galleon informant in July 2007 that Google's [GOOG
Loading...
()
]earnings would be below market expectations. Galleon traded on that information, netting a profit of $9 million, the biggest illegal trades identified in the complaints, which said a total of $20 million had been made by trading on nonpublic information.
- How to put some green into your portfolio.
- Returning from a Ron Paul political rally, one supporter was held at an airport due to the amount of cash he was carrying. NYT reports.
- Chances for a climate change treaty look dim at the Copenhagen conference.
- Dollar rebound? Wait at least another 10 months, charts say.
- Online social networking phenomenon Facebook is the source of New Oxford American Dictionary’s word of the year.
- Hard times in Hollywood are boosting job applications in the porn business.
Data is a real-time snapshot *Data is delayed at least 15 minutes