Hedge funds are in prosecutors' crosshairs for insider trading as never before. The most recent cases brought against hedge fund executives last week as part of the FBI and the SDNY's "Operation Perfect Hedge" are only the very latest in a huge surge of prosecutions. Indeed, the WSJ reports that since late 2009, 63 people have now been arrested in this crackdown on insider trading, with 56 convictions. The FBI promises that more arrests are coming.

On January 19, 2012, proposed amendments to the Federal Sentencing Guidelines were announced that will increase the “offense level” (and therefore the recommended sentence) for insider trading by two points if the violation involved “sophisticated insider trading.” Courts will consider factors such as the number of transactions, their value and the duration of the trading in determining what is "sophisticated." Yes, hedge funds, we are again looking at you.

On Thursday, January 26, I will moderate a webcast that will focus on insider trading compliance for hedge funds. The webcast will examine the current, tumultuous legal environment for hedge funds and insider trading, and discuss ways hedge funds can protect themselves going forward. In addition, the webcast analyze how technology has presented new and unique challenges in this area, what technological steps a firm should undertake if it suspects an employee of unlawful insider trading, and how to best handle the many data-related issues which arise in a DOJ, SEC or internal investigations of possible unlawful insider trading.

The panel includes Adam Wasserman, partner at Dechert LLP, and John Reed Stark, Managing Director and Deputy General Counsel, Stroz Friedberg. To attend this free webcast scheduled for Thursday, January 26, at 1 pm Eastern, please sign up here.