By David Glovin, Jan 12, 20011
UBS AG investment banker Nicos Stephanou, facing more than 10 years in prison for insider trading, made a quick decision following his arrest two years ago: He decided to become a government informant.
For months, Stephanou secretly recorded telephone calls with four friends about pending deals and told investigators all he knew about their insider trading. After his testimony at a trial put one of them behind bars for six years, prosecutors helped him stay out of prison for his own crimes.
As the U.S. government cracks down on insider trading at hedge funds, technology companies and expert-networking firms, more than a dozen traders, lawyers and executives are following in Stephanou’s footsteps.
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