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Look Out, Wall Street: Feds Using Wiretaps Now

Insider trading case against Galleon is first to use the tactic

By John Johnson,  Newser Staff

Posted Oct 17, 2009 1:04 PM CDT
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(Newser) – The bad boys of Wall Street better watch their mouths. Federal prosecutors used wiretaps to make their case against hedge fund giant Raj Rajaratnam this week, and they plan to use them again in similar investigations. Wiretaps may be common when going after the mafia, say, or terrorists, but their use in the Rajaratnam case is "unprecedented," says the US attorney with jurisdiction over Wall Street's biggest players.

“What’s very unusual is that the case is built on wiretaps,” a former federal prosecutor tells Bloomberg. “You need very specific and timely evidence of criminal activity before a judge is going to let you go up on a wiretap.”

Mark Kurland is led in handcuffs from FBI headquarters in New York Friday, Oct.16, 2009.
Mark Kurland is led in handcuffs from FBI headquarters in New York Friday, Oct.16, 2009.   (AP Photo/ Louis Lanzano)
Raj Rajaratnam, billionaire founder of the Galleon Group, is led in handcuffs from FBI headquarters in New York Friday.
Raj Rajaratnam, billionaire founder of the Galleon Group, is led in handcuffs from FBI headquarters in New York Friday.   (AP Photo/ Louis Lanzano)
Raj Rajaratnam, billionaire founder of the Galleon Group, is led in handcuffs from FBI headquarters in New York Friday.
Raj Rajaratnam, billionaire founder of the Galleon Group, is led in handcuffs from FBI headquarters in New York Friday.   (AP Photo/ Louis Lanzano)
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COMMENTS
Showing 3 of 10 comments
passinthru
Oct 19, 2009 7:42 AM CDT
because jayster, youre not stealing millions of dollars from americans are you? youre not ducking out on golden parachutes and avoiding thousands of dollars in taxes, are you? if you are, then yes youre probably being tapped, otherwise youre just another citizen with too much to say sometimes and should know when to realize that youre really not that important and have been left alone to live your life annoying only other simple people. so stop worrying unless youre part of the latter.
passinthru
Oct 19, 2009 7:42 AM CDT
because jayster, youre not stealing millions of dollars from americans are you? youre not ducking out on golden parachutes and avoiding thousands of dollars in taxes, are you? if you are, then yes youre probably being tapped, otherwise youre just another citizen with too much to say sometimes and should know when to realize that youre really not that important and have been left alone to live your life annoying only other simple people. so stop woorying unless youre part of the latter.
d3wd
Oct 19, 2009 5:59 AM CDT
snowleopard: What you fail to recognize is that the Republicans and the Democrats are on the same team. The Republicans did that? Really? Go look at how many Democrats voted for the Patriot Act etc. Anyone that roots for either major party is either bought off, or retarded.

 
Wall Street • insider trading • hedge fund • wiretap • wiretapping • Raj Rajaratnam • Galleon Group

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