Hedge Funds Security
Hedge Funds Hire Security Firms to Sweep for Bugs
“Over the past six months, there has been a really heightened interest in electronic sweeps for hedge funds,” said Christopher Falkenberg, founder of Insite Security, a security and risk management firm in New York. “They’re working harder at clamping down on their information security and making sure the telephones are secured and the offices aren’t being bugged. We’ve also been asked to sweep traders’ homes.”
Federal prosecutors in New York have filed criminal charges against more than 40 individuals, alleging they shared secret information about company earnings and takeovers.
According to court papers filed by the Securities and Exchange Commission, at least 15 hedge funds improperly received inside information.
This month prosecutors filed their first charges against hedge fund employees in connection with a new probe. The investigation is focusing on insider trading allegedly conducted through firms, known as expert networks, that match industry specialists with money managers. Source