One of the most common crimes that are committed in business and corporate settings is referred to as white collar crimes. White-collar crimes are crimes that are committed by employees of company that consist of them giving or taking illegal advantages before the information is made public. For example “David Carpenter, Kenneth P. Felis, and R. Foster Winans, Petitioners vs. United States”. In this case R. Foster Winans was sentenced in 1985 for informing two stockbrokers about stocks and columns that have high predictable value on the market. R. Foster Winans disclosed this information to the stock brokers before the company made the information available to the public. The crime that was committed in this case is referred to as insider trading. Insider trading is when employees inside of a company have access to profitable information that has not been made available to public in regards to the stock market. In addition, insider trading is unethical because insider trading violates the U.S. Securities and Commission guidelines, …show more content…
However, those individuals are able to generate large amounts of profit due to the fact that the public were not made aware of the potential of the stock. In addition, insider trading is unfair because an individual has potential information that can assist them in generate a vast amount of revenue or protect from a profit loss. Furthermore, when other individuals start to notice the trend then those individuals begin to remove their investment or no longer participate in market which causes a disruption in the financial market. In addition, insider trading affects the individual who is prosecuted for committing the crime. For example according to Theodore F. di Stefano “On Oct. 13, 2011, the hedge fund billionaire Raj Rajaratnam, received 11 years prison sentence to date for insider