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Former Dell Execs Involved In Massive Insider Trading Probe
DMandPenfold writes "Two former Dell employees, including a former investor relations manager, were part of a $62 million record-breaking insider trading scam, involving the company's shares as well as Nvidia stock, according to the FBI. The news comes as the U.S. authorities step up their pursuit of inside traders. Two months ago, Galleon hedge fund founder Raj Rajaratnam was sentenced to 11 years in jail for his role in a scam involving AMD, IBM and 3Com stock. Yesterday, Sandeep Goyal, an employee at Dell's U.S. headquarters between 2006 and 2007 before becoming a financial analyst, was arrested. An unnamed co-conspirator in Dell's investor relations department from 2007 to 2009 is also alleged to have been part of the scam. ... Goyal allegedly made $175,000 by providing inside information about Dell to a hedge fund. He has pleaded guilty to charges of securities fraud."
and yet... John Corzine is still walking the streets.
They might be able to start softball team of convicted inside traders at Fed Med by the end of the decade. its something everyone knows is happening, but almost no one gets caught.
A truly free market would solve it!
How?
I SAID A TRULY FREE MARKET WOULD SOLVE IT!
Insider trading is hugely common in the corporate world to the point that there is an entire industry surrounding it (Wall Street). Any prosecutions for "insider trading" are totally political. They either upset someone in power, upset a competitor with powerful friends, or didn't do something they were asked to do.
See Quest's CEO as an example. He refused to allow the NSA to spy on Quest's customers and suddenly he is in jail for "insider trading." Opps.
Folks...
You can't refer to the regular posters as "folks", post AC, whip out a scare tactic, and support censorship all in the same breath.
(Actually you CAN, but expect it to be pointed out.)
It doesn't strike me as being an easy thing, either way; on the one hand, it's a kind of fraud, which is one of the legitimate reasons for having a government (institutionalized and monopolized force). On the other, information is always diffused and imperfect in any market, so arresting and incarcerating people for not providing it is not likely to work well if only for political reasons (Google Harry Markopolos for an example of why). In that sense, the SEC gives people a false sense of security that the government is doing some aspect of due diligence for them that is not in reality happening.
Dog is my co-pilot.
Yesterday Google announced earnings. At 4:01pm EST, exactly. I was able to get the page at 4:01:05pm EST, and just as a joke at the exact same time I checked out after hours trading on GOOG. It was already down 8%, though 5 minutes earlier it was holding around even on close. Tell me, how anyone was able to parse that document in 4 seconds, place the trade, and have it go through after hours.
The system is already so corrupt and broken that anybody who isn't on the "in" shouldn't ever try to invest except for extreme long term. I don't know why a case like this would surprise anyone.
Truly free market, you say? Last I looked, one of the conditions for a "truly free market" was perfect knowledge for all the parties. Quite the opposite to "inside knowledge".
Dude, you're getting a cell?
Man blir trött av att gå och göra ingenting.
My understanding is that the majority of libertarians would say: no, insider trading should not be a crime, as it does not involve the use of force. Government should exist to protect citizens from being deprived of life and property by force, and therefore the criminal statutes should reflect that. At worst insider trading would be a contractual violation, and hence subject to a civil court case. And if you have not signed a contract prohibiting insider trading, then an insider would have freedom to act as they wish. Some would go further and argue that insider trading is actually a good thing, as it lets outsiders gain some insight as to what is actually going on inside a company, ie. in itself, insider trading it is a form of information sharing that communicates useful information to people outwith the company.
A better question would be, if corporations are people, wouldn't buying stocks violate the 13th amendment abolishing slavery?
"Have you ever thought about just turning off the TV, sitting down with your kids, and hitting them?"
This affects things such as rational pricing of goods, as well as supply and demand. Insider trading is also a momentary arbitrage. While there is nothing inherently wrong with arbitrage, those privy to the information are those that get to take advantage of it while the non-informed parties will suffer. This is not conducive to a true free market.
Real insider trading is done in government, before it releases a law or decision upon a company's future (like knowing whether FDA will deny or allow a new drug to the market), and Senators / Congressmen being bribed in stock options where straight up cash would be considered an illegal bribe, because they voted themselves this little neat trick.
Insider trading idea is a bunch of crap. The only problem is FRAUD, all other trading that is done privately is done based on some form of information.
For a top manager to bet against his company and then tank the stock by doing something that would undermine the company's value is FRAUD.
For a top manager to bet against his company because he THINKS that the company is going in the wrong direction - that's not fraud, that's common sense.
For a government official to accept a bribe in form of a stock option or to short stock of a company before passing a LAW that would hurt that company financially - that is REAL insider trading fraud.
You can't handle the truth.