FBI soliciting financial industry whistleblowers to reveal high speed computer stock market manipulation

Bloomberg news has reported that the FBI is openly soliciting stock exchange workers to blow the whistle on front running and manipulation via high speed computers.

So called high frequency stock trading in which firms use sophisticated technological tools and computer algorithms to trade securities in fractions of seconds is considered market manipulation and illegal.

The United States Securities and Exchange Commission(SEC) has a number of enforcement investigations of high frequency and automated trading.

Under the SEC whistleblower statute a reward of between 15-35% of the government’s recovery can be the reward for whistleblowers who can remain anonymous and work through counsel. The SEC law is one of two that allows this.

Recently Connecticut based SAC Capital Advisors agreed to pay $1.8 billion in settlement after pleading guilty to insider trading .

Jeff Newman represents financial whistleblowers