Cheats on Wall Street

Random walk? No way. The market is rigged. It's moves are far from randon. High-speed traders are minipulating direction and price. Charges outlined in my book are being amplifed by academic stuides and formal investigations. Bil Alpert's story in this week's Barron's concludes that high-frequency traders have advanced information and use it to trade options. The Department of Justice and the regulators, using pattern-recognition techniques, are pouring over it for evidence of cheating. John Bates, a member of a CFTC advisory council, says regulators know that cheating is occurring on a regular basis and haven't the tools to stop it. If you are an investor, you better be aware of these activities or you are a lamb ripe for roasting by thewolves of Wall Street.