• LAW
  • FEBRUARY 16, 2011, 5:42 P.M. ET

Justice Department Urges Stiffer Penalties for Insider Trading

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BY DEVLIN BARRETT

The Justice Department is urging stiffer punishment for insider-trading suspects, saying the complexity of new schemes like the recent cases of alleged wrongdoing at "expert networking" firms show a need for longer prison sentences.

Manhattan U.S. Attorney Preet Bharara testified Wednesday on behalf of the Justice Department at a hearing of the U.S. Sentencing Commission, which establishes sentencing policies for the federal court system.

Mr. Bharara told the commission that "the nature and scope of insider-trading activity has evolved," while the sentencing guidelines regarding insider trading have not.

"The guidelines as they stand may be letting some defendants in ...

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