The SEC Goes Long on Insider-Trading Cases

The Securities and Exchange Commission ("SEC") and the Department of Justice ("DOJ") are aggressively pursuing insider-trading cases. The SEC is in the middle of preparing insider-trading charges that could include consultants, investment bankers, hedge fund and mutual fund traders, and analysts across the U.S. Just in the last month, the SEC has filed over twenty (20) insider trading cases. Many of these tactics include court ordered wiretaps and consensual telephone records by cooperating witnesses. All of this recent activity indicates that the crackdown on alleged insider-trading within the alternative investment industry is just the beginning. Few businesses expect to become the subject of a government investigation. However, given the current regulatory climate surrounding insider trading claims by the SEC and the DOJ, it may be a good time for you to review your company's Code of Ethics.

Sadis & Goldberg has prepared a one (1) hour compliance training seminar covering the Code of Ethics and highlighting some recent cases brought by the SEC's enforcement staff. Our attorneys have helped many clients prepare for and respond to subpoenas and SEC interviews. The best time to consider your options is before an unannounced visit from the SEC.

If you have any questions or would like us to conduct compliance training sessions for your firm, including a review of your company's Code of Ethics, Please feel free to contact Daniel G. Viola at 212.573.8038 or

Cheryl Spratt