U.S. Probing Dorfman, BusinessWeek Says

The relationship between influential stock market reporter Dan Dorfman and a stock promoter has drawn scrutiny from federal prosecutors, BusinessWeek reported Thursday.

The magazine, citing anonymous sources it described as close to the inquiry, said Dorfman and stock promoter Donald Kessler are under investigation for activities that include insider trading, wire and mail fraud and other violations of securities law.

Both Dorfman and Kessler told BusinessWeek that they were unaware of any investigation. Dorfman, who writes for Money magazine and has a daily commentary on CNBC-TV, said he assumed regulators are always scrutinizing him.

“I would never jeopardize my career and integrity for a fast buck,” Dorfman was quoted as saying by BusinessWeek.

In a statement, CNBC said it believes Dorfman has carefully observed the “strict ethical standards” it imposes on its reporters.

Dorfman’s TV commentaries often move the stocks of companies he talks about. Earlier this month, the Chicago Board Options Exchange asked regulators to approve a brief suspension of the computerized options trading system when the market erupts after reports by television business analysts, such as Dorfman.