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Six charged in Silicon Valley insider trading ring

sec.gov

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Re: Six charged in Silicon Valley insider trading ring

#21

Post by elliekelly »

tw600040 wrote: post #13

For anything worth securing we have security engineered into it, like passwords, encryption what not. But for insider trading we are just supposed to assume that the players play right without any checks or balances? I don't think just the SEC is sufficient to prevent this.

I was on a call last week about the SEC’s changing priorities under Chairperson Gensler and the consensus among all of the attorneys on the call was that they will be more data-driven and have already been using data analytics far more extensively than ever before. I suspect the case in the linked release came about from those efforts:

> “Using sophisticated data analysis, the SEC was able to uncover this insider trading ring and hold each of its participants accountable to ensure the integrity of our markets,” said Joseph Sansone, Chief of the SEC Enforcement Division’s Market Abuse Unit.

I think in time the SEC’s enforcement in this area will become more automated and efficient.

Re: Six charged in Silicon Valley insider trading ring

#23

Post by brianwawok »

endisneigh wrote: post #5

White collar crimes are barely punished - what a joke. Insider trading isn’t larceny, but for the sake of conversation let’s say it was - 1 million in insider trading would be like 4000 counts of grand larceny, each of which carry a max fine of 25K each. If people were actually fined 100 million for 1 million of insider trading I bet you it’d stop happening. For comparison $250 or more stolen is grand larceny and has…

Right. But if someone has total assets of say 500k... whats the difference of a 1 million or a 100 million dollar fine? You literally cannot collect either before the person dies / moves to Mexico.

Re: Six charged in Silicon Valley insider trading ring

#24

Post by WalterBright »

endisneigh wrote: post #5

White collar crimes are barely punished - what a joke. Insider trading isn’t larceny, but for the sake of conversation let’s say it was - 1 million in insider trading would be like 4000 counts of grand larceny, each of which carry a max fine of 25K each. If people were actually fined 100 million for 1 million of insider trading I bet you it’d stop happening. For comparison $250 or more stolen is grand larceny and has…

> I bet you it’d stop happening

You'd lose that bet. The death penalty didn't stop pickpocketing, or any other crimes, for that matter.

People just don't work like that. Constantly ratcheting up the penalties starts moving into medieval territory rather quickly.

Re: Six charged in Silicon Valley insider trading ring

#25

Post by math-dev »

ffggvv wrote: post #7

glad the sec spends all its time on 6 randos rather than meme stocks, scam chinese education companies, nft/crypto, scam spacs, tesla, etc… definitely have their priorities right

SEC is clearly corrupt…which is a sad reflection of current affairs

Re: Six charged in Silicon Valley insider trading ring

#27

Post by endisneigh »

WalterBright wrote: post #24
endisneigh wrote: post #5

White collar crimes are barely punished - what a joke. Insider trading isn’t larceny, but for the sake of conversation let’s say it was - 1 million in insider trading would be like 4000 counts of grand larceny, each of which carry a max fine of 25K each. If people were actually fined 100 million for 1 million of insider trading I bet you it’d stop happening. For comparison $250 or more stolen is grand larceny and has…

> I bet you it’d stop happening You'd lose that bet. The death penalty didn't stop pickpocketing, or any other crimes, for that matter. People just don't work like that. Constantly ratcheting up the penalties starts moving into medieval territory rather quickly.

There's little connection between violent and non-violent crimes other than them both being crimes. I didn't make any claim about violent crimes so I'm not sure why you even mentioned the death penalty.

The reality is, if you see these articles, average the restitution and see that in general you only pay 50% of what you illegally gained, there's little deterrence.

Re: Six charged in Silicon Valley insider trading ring

#28

Post by realist2001 »

qqtt wrote: post #2

I'm not sure if this is standard for SEC press releases, but why do they include details such as, "he was a school teacher" and, "he owed gambling debts"? I've always suspected the SEC investigations regarding things like insider trading are typically the opposite of justice and designed to go after the smallest possible players while giving the illusion of enforcement. And these details in an allegedly serious inves…

>> why do they include details such as, "he was a school teacher" and, "he owed gambling debts"?

They want to signal to larger players (hedge funds, etc) that enforcement is only on smaller players like high school teachers. They are signaling to their rich friends and power brokers in NYC/Connecticut that there is nothing to worry about w/r/t to the real, bigtime insider trading.

This comment is meant to be both sarcastic and true, however depressing.

Re: Six charged in Silicon Valley insider trading ring

#29

Post by kyleblarson »

endisneigh wrote: post #5

White collar crimes are barely punished - what a joke. Insider trading isn’t larceny, but for the sake of conversation let’s say it was - 1 million in insider trading would be like 4000 counts of grand larceny, each of which carry a max fine of 25K each. If people were actually fined 100 million for 1 million of insider trading I bet you it’d stop happening. For comparison $250 or more stolen is grand larceny and has…

Have you been to a Walgreens in SF lately?
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