SEC Also Conducting Insider Trading Inquiries: Khuzami
Although it was the Department of Justice and the FBI that took the lead on four insider-trading arrests Thursday, the Securities and Exchange Commission is also conducting its own inquiries, the commission's director of enforcement said Friday.
Asked if insider trading is pervasive on Wall Street, SEC enforcement director Robert Khuzami told CNBC he frequently sees indications that illicit trading is taking place in the market.
"I think that if you look at just the trading activity that precedes significant announcements of M&A activity or accounting restatements, you see spikes in trading," Khuzami said. "So it is clear that that's a pretty good indicator that the activity continues, and we're dedicating additional resources to it."
Khuzami also cited new recent initiatives designed to root out improper activity.
"We created a market abuse unit specializing in market related activities, including insider trading and market manipulation," he said. "Many of our offices are conducting inquiries. So it's an active area for us."