Insider Trading, Arrest | featured news

Federal agents have arrested Michael Steinberg, a senior SAC Capital Advisors portfolio manager, the most senior employee at the giant hedge fund ensnared in the government’s vast insider trading investigation.

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.