How To Avoid The Pitfalls Of Expert Networking

Law360 (April 20, 2011, 1:58 PM EDT) -- Recent insider trading prosecutions in the Southern District of New York have drawn attention to the use of "expert networking" firms as potential conduits for unlawful trafficking in inside information. For example, the indictment in United States v. Jiau, No. 11 Cr. 161 (JSR) (S.D.N.Y. filed Mar. 8, 2011), charges a consultant used by one of the networking firms — and that firm's hedge fund client — with unlawfully trading on inside information allegedly obtained from employees of high-tech companies....

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