LEGAL UPDATES
Bloomberg News Interviews Nathan Burney on Galleon Hedge Fund Insider Trading Case
As details of the arrests regarding the Galleon insider trading case unfolded, Bloomberg News tapped its sources on various aspects of the high-profile case. Nathan Burney, of Quadrino Schwartz, was interviewed and quoted by Bloomberg on the use of informants in such cases.
The Galleon case involves allegations of insider trading, with a former Intel Corp. official involved in the scheme, but allegedly cooperating as a witness.
Mr. Burney, a former Manhattan prosecutor, spoke to the problems the government can face -- and thus some of the attack points for defense attorneys -- when informants are used. In particular, Mr. Burney spoke to how informants try to manipulate conversations caught on wiretaps in such a way as to make the tartget look and sound guilty.
The cooperating informants in the Galleon case allegedly gave or were solicited for insider tips about Google, Intel, and Hilton Hotels and then made trades based upon the information obtained.