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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."
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.)
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.
Oddly enough, insider trading is LEGAL for members of Congress. Ain't that just awesome?
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?"
Mod this up. Congress doesn't even try to hide their corruption these days.
And this is how SOPA/PIPA will play out: A new version will be introduced just after the elections that includes exemptions/protection for the big players like Google and Facebook. This version will be passed no matter how much "the people" scream, as long as congressional donations aren't in jeopardy.
- For the complete works of Shakespeare: cat
The short answer is no.
The trick here is that a representative’s knowledge of pending legislation, regulatory actions, etc. (i.e. knowledge from his day job) is technically not insider information – which of course if big enough to drive a very large truck though.
So congressmen can still be charged with insider trading if they got their knowledge outside of their day job Congressmen have been prosecuted when outsiders have bribed them with inside information (less paper trail then giving them money) but it’s been rare.