17 Aug 2017
The Securities and Exchange Commission charged seven individuals on Wednesday with insider trading in what the regulator said was a wide-ranging scheme that generated more than $5 million in profits by trading on confidential information about dozens of impending mergers and acquisitions allegedly stolen from the investment-bank employer of one of the accused.
The traders allegedly attempted to evade detection by using shell companies, code words and an encrypted, self-destructing messaging application. However, the SEC Market Abuse Unit’s Analysis and Detection Center used data-analysis tools to detect suspicious patterns such as the improbably successful trading across different securities over time.
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