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
Look Out, Wall Street: Feds Using Wiretaps Now
Mark Kurland is led in handcuffs from FBI headquarters in New York Friday, Oct.16, 2009.   (AP Photo/ Louis Lanzano)

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.” (Read more Raj Rajaratnam stories.)

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