Salient to Investors:

The number of people sued by the SEC or charged with insider trading by the Justice Department has more than doubled since 2008 – 22 percent involving health-care stocks.

Bankers, lawyers, accountants, doctors, traders, analysts, hedge-fund managers, company chiefs, pharmaceutical executives and movie producers, lovers, neighbors, classmates and fraternity brothers and families were perpetrators.

Organized rings of financial professionals lack the comfort of trusting leaks to relatives or old friends, so often cover their tracks through disposable mobile phones, coded e-mails, middlemen and other deceptions.

New detection approaches examine traders and the timing and volume of their buying and selling, looking for similar trading activity by investors, without being certain if they know each other.

Asking people why they made certain trades doesn’t work with rings, so those being arrested may be learning about the investigation for the first time.

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