Federal Bureau of Investigation (FBI) that hotbed of social media as a potential securities fraud agents scouring Twitter and Facebook tips, based on the $ 2 trillion hedge fund industry's two top agents responsible for a long-running insider trading investigation .
April Brooks, a special agent in charge of the New York Field Office of the FBI and David Chavez supervision agent said that it is difficult to predict the next wave of securities fraud, but they added that it will have a lot of work to do and technological progress and social media.
"I will tell you the technology will play a huge role in social media, microblogging any kind of technology is new, that does not exist today, if there is any way to take advantage of it, these people will take advantage of it," Brooks told Reuters Television in an interview on Reuters Investment Outlook 2013 Summit.
Brooks and Chavez supervision of the FBI's so-called "operating fully hedged, which has resulted in more than 60 convictions, hedge fund traders, analysts and industry consultants.
Last Tuesday, a day after Reuters Television in an interview, the government charged for the Matthew Martoma Steven A. Cohen's SAC Capital, a former employee, with $ 276 million insider trading scheme, prosecutors called the "most profitable" constantly.
Cohen, its $ 1.4 billion hedge fund is one of the most successful
And the most famous Wall Street, was not charged with any wrongdoing, the complaint said, he signed the company working on industry Elan and Wyeth before July 2008, bad news for a drug clinical trials.
Brooks and Chavez SAC in an interview with reporters, did not give tips, actively investigating and refused to talk.
Chavez said: "Some people think," insider trading climax, we have reached the top. I suggest that we do not have.
Hedge funds and large institutional investors and investment research firm, such as Muddy Waters the the (_AT_ muddywatersre), has accepted Twitter as a platform to share their ideas and investment strategies.
November 20, PIMCO's Bill Gross (Bill Gross) tweeted by @ PIMCO: "Bernanke confirmation PIMCO's new normal after three years of at least 2% of the economic potential may be lower and longer Sir . "
Total, Federal Reserve Chairman Ben Bernanke (Ben Bernanke) and PIMCO portfolio positioning, which he called a "new normal" of the development of the world economy - the actual growth of 2% and 2% inflation rate .
"People are using Twitter as a powerful distribution mechanism, occasionally with a meaningful influence on the market, said:" Independent analyst Daniel Yu, who is Twitter the handle @ LongShortTrader under loyal users.
Research and survey reports, Twitter can be used as an early indicator of changes in investor sentiment around specific stocks and commodities. This allows the Twitter data was used to predict fluctuations in the market price.
A report written by the scholar John Bollen, Huina Mao Xiao Jun, said on twitter "calm" the extent, predictable - 87.6% accuracy - how the Dow Jones Industrial Average will be a time of 2-6 days in advance .
Fact criticized the U.S. authorities to crack down on insider trading law enforcement, failed to bring any prosecution of Wall Street bankers in the financial crisis, the attention from some hedge funds and other investors.
Brooks and Chavez acknowledged the criticism. They say, there is a desire to prosecute, but the law and not as a criminal offense, some people think that the action should be punished.
"I would not say that we have missed an opportunity," Brooks said, the financial crisis of 2008. "There may be others who are responsible for, but not necessarily a violation of federal law."
Two agents in the Securities Division of the FBI, New York Branch, he said, when they meet Wall Street, they explain that the hedge fund industry's vendetta or oppose. Investigation of insider trading is simply the market more fair, everyone is part of the effort.
"This information is where we will continue to come here," Brooks said. Violation of this type, this type of crime affects everyone. "
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