The Wall Street Journal reports Sunnyvale's AMD and Mountain View's Primary Global Research are among the companies being examined. Investigators are looking into whether consulting companies illegally passed along inside information to investors looking for an edge.
"What's more suspicious here, is a sort of a network of advisors that are hired by hedge funds and mutual funds to provide a sense of what's going on deep within companies," explained Terry Connelly with the Golden Gate Business School. "These advisers are essentially networks of consultants who are either current or former employees of major corporations that may have market moving activity."
Primary Global Research responded Saturday by saying it is not the target of any investigation to the best of its knowledge. The company claims none of its employees have done anything illegal.