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Former Dell Execs Involved In Massive Insider Trading Probe

Posted by Soulskill on from the dude-you're-gettin'-a-cell dept.

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."

4 of 149 comments (clear)

  1. Free market! by Anonymous Coward · · Score: 5, Funny

    I would be curious to hear the libertarian viewpoint on whether insider trading should be a crime?

    A truly free market would solve it!

    How?

    I SAID A TRULY FREE MARKET WOULD SOLVE IT!

  2. Did pay off the right people? by Manip · · Score: 5, Interesting

    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.

  3. Insider.. it's all insider.. by iONiUM · · Score: 5, Insightful

    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.

  4. Their commercials said it first by theArtificial · · Score: 5, Funny

    Dude, you're getting a cell?

    --
    Man blir trött av att gå och göra ingenting.