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FBI Expands Crackdown on Insider Trading
CNBC.com | March 09, 2012 | 11:55 AM EST

From media campaigns to technological advancements, the Federal Bureau of Investigation is changing the way it combats insider trading.

Most recently, the FBI recruited actor Michael Douglas , who famously played a greedy corporate titan named Gordon Gekko in the motion picture “Wall Street,” for a public service announcement that issues a warning.

In the PSA, Douglas says, “The movie was fiction, but the problem is real,” and encourages anyone with information on insider trading to report it to a local FBI office.

The FBI says that it has seen an increase in the prosecutions of insider trading cases since the 2008 financial crisis. The largest of those cases was an insider-trading ring headed by Raj Rajaratnam.

Rajaratnam, once the head and founder of the $7 billion hedge fund Galleon Group, received one of the harshest sentences to date for an insider-trading case.On Oct. 13, 2011, Rajaratnam was sentenced to 11 years in prison. The judge also fined him $10 million and ordered him to forfeit $53.8 million. In a related civil suit, Rajaratnam was ordered to pay a $92.8 million fine. It is the longest sentence ever for this type of white-collar crime, as well as the largest fine ever imposed by the Securities and Exchange Commission.

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