What began as an investigation into leaked information from the Federal Reserve has become a full-blown insider-trading case.
The case comes down to the firm Medley Global Advisors, which shared details about future Fed plans to boost economic stimulus back in 2012. The firm now claims that it has special protections because it considers itself a media organization, reported the Wall Street Journal.
It’s now attracted the attention of federal prosecutors from the Southern District of New York and the Commodity Futures Trading Commission, which are looking at both the information leak and possible insider-trading violations.
Medley told the WSJ that it’s in the clear because the company “reserves complete editorial freedom in its newsletters” that are “made available to all.”
The investigation is still in its early stages, and no conclusions have been made regarding possible insider trading.