Insider Trading | featured news

Federal authorities have arrested eight more people in connection with the Galleon insider-trading scandal, sources familiar with the matter said on Thursday.

Galleon Group is winding down all its hedge funds, company founder Raj Rajaratnam told employees and investors in a letter. The decision comes after his arrest and charges in a massive insider-trading case.

One of America's wealthiest men was among six hedge fund managers and corporate executives arrested Friday in a hedge fund insider trading case that authorities say generated more than $25 million in illegal profits and was a wake-up call for Wall Street.

Several U.S. federal investigations into subprime lenders involve possible insider trading before announcements of negative news about the lender, a Securities and Exchange Commission member said on Friday.