A Raid on Wall Street

Agents put the cuffs on insider traders

The bust was carried out with all the speed and precision of a major drug raid. There was nothing sleazy, though, about the locale: Manhattan's pinstriped financial district. On a chilly midmorning last week, a pair of federal agents strode into the gray stone headquarters of the blue-chip Kidder, Peabody investment firm. They headed for the 18th-floor office of Richard Wigton, 52, head of the company's risk-arbitrage and over-the-counter stock-trading departments. As Kidder, Peabody employees looked on in dismay, the officers arrested Wigton, then led the stunned executive away. The charge against Wigton: conspiracy to commit illegal insider stock trading.

Meanwhile,...

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