[ by Larry Goldfarb]

New Jersey prosecutors are beginning to become known for their expertise in handling insider trading, not just government corruption. Its picking up more insider trading cases, edging into territory that has historically been dominated by the federal prosecutors in New York City.

The most recent case was unveiled on Monday when prosecutors in Newark announced charges against six people - three of whom were friends from high school - for their alleged roles in an insider-trading ring. The six have been charged for passing tips to each other about healthcare companies which generated $1.4 million in illegal profits. New Jersey's growing clout in law enforcement could lead to deeper involvement in bigger cases.

While they are loathe to admit it, U.S. prosecutors around the country compete for cases and develop expertise in pursuing certain types of criminal activity. In addition to the reputations they have developed for success in certain areas, there are several ways a U.S. attorney's office can stake a claim to a case. Prosecutors have a good chance of establishing jurisdiction over a case if the alleged crime was committed in their territory or if one of the alleged criminals is based there.

"New Jersey is New York's next door neighbor, and many of the U.S. attorneys working in the U.S. office in New Jersey have experience working with New York law firms and with highly sophisticated financial matters," said Alan Zegas, a criminal defense lawyer in Chatham, New Jersey.

For more information, please read [Reuters, 11/19/12].