1 MM earned in an inside trading? That should be in the position number 2340 in last year alone. Glad to see the SEC has their priorities straight.
Six charged in Silicon Valley insider trading ring
91–100 of 164 posts
Re: Six charged in Silicon Valley insider trading ring
#92> Brown ... repeatedly tipped ... to his best friend Wylam ... Wylam ... traded on this information and also tipped Sood .. Sood traded on this information and tipped his three friends also illegally traded on the information. (edited for brevity) So it sounds like Brown texted his bestie something he shouldn't have. Bestie then passed it on to people who made lot of money on it. The SEC, through some combination of…
> Since Brown didn't trade I fail to see where he violated the law This article suggests that he may have engaged in conspiracy to commit securities fraud. https://www.latimes.com/business/la-fi-supreme-court-insider...
That article seems to be talking about Wylan, not Brown.
>$1.5 million in stock profits by trading on confidential tips that originated from his brother-in-law, an investment banker in California.
Brown may have violated some minor regulatory laws depending on the specific details of his employment but you generally need to trade, benefit or have reason to think trading is happening on your info in order to get slapped for insider trading.
Re: Six charged in Silicon Valley insider trading ring
#93I'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…
I also found the "best friend" part to be strange – I expected language more like "close acquaintance" instead
BFF.
Re: Six charged in Silicon Valley insider trading ring
#94I'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…
The full context in the press release is: > The SEC’s complaint alleges that Wylam, a high school teacher and bookmaker, traded on this information and also tipped Naveen Sood, who owed Wylam a six-figure gambling debt. Sood allegedly traded on this information and tipped his three friends Marcus Bannon, Matthew Rauch, and Naresh Ramaiya, each of whom also illegally traded on the information. In order to make an insi…
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Re: Six charged in Silicon Valley insider trading ring
#95> Nathaniel Brown, [..] repeatedly tipped Infinera’s unannounced quarterly earnings and financial performance to his best friend, Benjamin Wylam > Wylam, [..] and also tipped Naveen Sood > Sood allegedly traded on this information and tipped his three friends Marcus Bannon, Matthew Rauch, and Naresh Ramaiya It's less a ring and more a tree One of the issues with leaking the info - you have no control over what is don…
There's an incredibly good 7-part podcast on the Australian case you're talking about, if anyone's interested. It's called The Sure Thing.
Re: Six charged in Silicon Valley insider trading ring
#96Earlier quoted context omitted.
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.
Who said anything about violent crimes? He brought up that in Victorian England pickpocketing (a non violent crime) carried the death penalty. Even with the ultimate punishment pickpocketing still happened.
This is misleading because at the same time hundreds of other types of crimes, violent and non-violent could also result in the death penalty.
Not to mention that was centuries ago and circumstances were very different. What punishment has completely stopped crime? No punishment can completely stop a crime from occurring, but the problem with insider trading is that the punishment doesn't even get back what was taken, so in a way you're rewarded, not punished.
Re: Six charged in Silicon Valley insider trading ring
#97I'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…
I also found the "best friend" part to be strange – I expected language more like "close acquaintance" instead
Wouldn’t that just leave you with more syllables and less precise language?
Re: Six charged in Silicon Valley insider trading ring
#98Re: Six charged in Silicon Valley insider trading ring
#99White 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…
But insider trading isn’t comparable to larceny whatsoever. There is no definitive victim. Yes, in some sense the market is “less fair”. But the purpose of insider trading law isn’t to create a level playing field. It’s perfectly legal for a well-funded hedge fund to fly helicopters over an oil refinery with infrared cameras, so they can know ahead before a public announcement how much revenue the company is doing. R…
My point isn't insider trading in particular but white collar crime in general. Even with your example, why not just make insider trading legal then, if there is no victim per se? Presumably the entire reason it's illegal, in addition to what you said, is because the existence of insiders trading would make the entire stock market itself no longer something where laypeople can confidently say is fair in the sense that risk-adjusted publicly-informed trades are optimal. Presumably said laypeople would exit the stock market after losing confident of it, resulting is less liquidity.
It's like pump and dumps, where the dumps aren't technically making victims of anyone as it's not like they've necessarily realized any loses. Regardless, money is being extracted from the so-called victims one way or another.
in any case, I do agree with your point.
Re: Six charged in Silicon Valley insider trading ring
#100Holy crap...I'm pretty sure that the Marcus Bannon mentioned is someone I went to high school with.
What an utterly bizarre, and shrinking universe.