Zvi Goffer, Emanuel Goffer, and Michael Kimelman were found guilty in an illegal insider trading case. Zvi Goffer used to work at Raj Rajaratnam's Galleon. He then went on to start his own hedge fund, Incremental Capital. This guilty judgment displays the power of wiretaps in convicting finance professionals who are engaged in illegal insider trading.
We don't think this will put an end to illegal insider trading. Hedge fund managers and analysts now know that they need to use stealthier methods of communication and never say anything that will reveal their scheme in their electronic/phone conversations.
There are several other forms of illegal insider trading that are very difficult to prove. Hedge funds and insiders will continue to profit from them. Insider Monkey will keep track of these people's transactions and develop actionable investment ideas that have the potential to outperform passive investing.