Houston Chronicle – Secret court-approved wiretaps put in place more than two years ago are now being used by prosecutors in a widening inquiry of securities fraud and insider trading involving hedge funds and consultants that provide industry research, according to court documents and interviews with people close to the investigations.
The wiretaps were originally part of an insider trading investigation of the New York hedge fund Galleon Group. Those wiretaps, which involved the phones of at least seven individuals, potentially provided prosecutors with a vast array of new evidence for use in the latest investigations. Only four of the seven wiretap targets have been identified in court papers that have been made public so far in the Galleon case.
