Hedge Fund Law Report – The Securities and Exchange Commission (SEC) has attempted to stop insider trading since its creation. Eliminating this misconduct has proven to be an elusive goal, as the Boesky scandal of the 1980s demonstrated. The growth of the hedge fund industry has heightened the SEC’s challenge.
There is a longstanding and widespread belief among law enforcement personnel that insider trading involving hedge funds is a systemic problem. Until recently, however, very few of the SEC’s insider trading cases involved hedge funds. Today, the SEC is committed “to root[ing] out insider trading on Wall Street and in the hedge fund industry.”
