Saturday, November 7, 2009

Hedge fund insider-trading scandal expands

One man snapped his cellphone in half and bit the memory card to conceal his actions, complaints allege. Fourteen more are charged in the continuing investigation.

Reporting from New York - As an eavesdropping-detection specialist, Kevin D. Murray normally works for companies concerned about possible spying by competitors.

But since a blockbuster insider-trading prosecution built on wiretaps and microphone-wearing informants became public last month, frantic hedge fund managers have raced to hire him.

"The nature of the question is 'Can you tell me if the government's bugging me?' " Murray said, adding that he turned down the three firms that approached him. (more)

All businesses need a counterespionage strategy and should inspect their premises periodically for illegal electronic surveillance. Illegal eavesdropping is a serious problem with costly consequences.

If you are the target of a government investigation, however, you are on your own. There isn't anybody who can tell you if your phones are tapped (even if they are willing to take your money to do so). Modern government electronic surveillance methods do not change the electrical characteristics of your phone. There is nothing to detect.