Limits Of Insider Probes Expand
Professor Joe Grundfest spoke with The Wall Street Journal's Jean Eaglesham on Justice Department and SEC's "war on insider trading" and how both agencies have taken on a "zero-tolerance approach."
The parking-lot photograph of a KPMG LLP partner allegedly accepting an envelope stuffed with cash doesn't just show one of the U.S. government's most powerful pieces of evidence in a big insider-trading case.
Some legal experts say the photo of auditor Scott London with golfing buddy Bryan Shaw also is a sign of how far prosecutors and regulators will go in their tactics to crack down on illicit stock tips.
Joseph Grundfest, a law professor at Stanford University, said the civil and criminal charges against Mr. London are more evidence that the Justice Department and SEC have "declared war on insider trading" and are taking "very much a zero-tolerance approach."