Currency dealers in London gave information about client orders to day traders who then made bets on their behalf, sidestepping restrictions on personal trading, three people with knowledge of the practice said.
Sitting before a cluster of computer screens in an apartment with the drapes shut, it took Naoki Murakami seconds to make $3,500 betting $1 million that Tokyo Electric Power Co. shares would fall a fraction of a percent.
Two former day traders who were convicted of trading on stock tips gleaned from the wife of a former Lehman Brothers Holdings Inc. salesman settled claims by the U.S. Securities and Exchange Commission.
Former Citigroup Inc. stockbroker Ralph Casbarro , who cooperated with prosecutors, was fined $500 and received no prison sentence or probation for his involvement in a scheme to let day traders eavesdrop on internal conversations over brokers’ “squawk boxes.”
A former broker at Merrill Lynch & Co. and Citigroup Inc. lost a bid to throw out his conviction for selling access to his brokerages’ internal “squawk boxes” after arguing prosecutors hid evidence of his innocence.
BM&FBovespa SA, the operator of Latin America’s biggest exchange, is lowering fees for stock transactions and will offer incentives to day traders to boost volumes, Chief Executive Officer Edemir Pinto said.
Billionaire Philip Falcone’s hedge fund, Harbinger Capital Partners LLC, was told it may be sued by federal regulators for securities-law violations and said it plans to halt investor withdrawals at year-end.
An SEC examiner lying to his boss, or an SAC trader using information provided by an investor relations guy at Dell, seem pretty defensible, but once you're getting bags of cash in bar parking lots something has gone wrong.