December 18, 2010

VARS: Insider Trading Scandal Could Have Far Reaching Impact

Expert networks are designed to connect hedge funds and investors with corporate experts, and they exist in a number of industries. Todd Swank, vice president of marketing at system builder Nor-Tech in Burnsville, Minn., has experience with expert networks in the IT business.

"I've been part of those kinds of research companies before," Swank said. "You feel bad for people who get sucked into it, because I see how it could happen. If people work with some of these companies, they're in high demand, they can make a lot of money doing that. One day you get a call asking if you'd be willing to set up a consulting session, asking all sorts of questions that you know the answers to very well. They're being taken advantage of by these research firms."

However, Swank says experts are warned in specific terms that revealing industry secrets is against the law. "Companies offer training where you'll told exactly what you are not allowed to say and do, especially at a public company," Swank said. "So they're not completely naive either. But I can see people getting into an organization, and not knowing where that fine line is."


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http://www.crn.com/news/components-peripherals/228800841/vars-insider-trading-scandal-could-have-far-reaching-impact.htm;jsessionid=hBgV08atNw9i5oZCjF0Hfw**.ecappj01