Chief Prosecutor For Hedge Fund Insider Trading Cases Seeks Heavier Sentencing Guidelines

Preet Bharara, the Manhattan U.S. Attorney spearheading the government’s prosecution in the present hedge fund trading scandal, has recommended more stringent sentencing guidelines for insider activity. In the past 18 months, Bharara’s office has charged 46 people with insider trading. Most were related to the case against Galleon Group founder Raj Rajaratnam, who has pleaded not guilty to charges against him and will go to trial on March 8. Another group relates to expert networks where indistry insiders passed tips to hedge fund managers and other private investment firms. Bharara said that while insider traders have become more sophisticated, the sentencing guidelines have not changed. It is unclear what recommendations for sentencing he will make for those charged who have pleaded guilty or will be found guilty by a jury