Friday, November 16, 2012

Feds want Wall Street to think they’re bugged

Mark Pomerantz, a former federal prosecutor, says the government wants everybody on Wall Street to believe all their conversations are being taped.

Pomerantz tells MarketWatch that the perception of wiretaps being employed in a widespread way is great for deterrence. However, he said he didn’t think they were being employed extensively by federal prosecutors.

His comments come after the conviction of hedge-fund manager Raj Rajaratnam for insider trading, a case brought via the use of wiretaps. Rajaratnam’s lawyer seeks to have a panel of federal appeals court judges set aside his conviction on the basis that the government employed deceptive techniques to obtain approval for wiretapping his client’s cell phone. Key evidence in the case against Rajaratnam comes from incriminating phone calls, according to reports.

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