Insider trading

trade, it common that interest-motivated insiders may make use of it to conduct insider trading. Insider trading is defined as trading of securities in possession of relevant material, nonpublic information, in breach of fiduciary duty (U.S. SEC, 2013). In 2013, Hong Kong was struck with an astonishing insider trading case committed by Du Jun, the former Morgan Stanley managing director, who…

especially through the eyes of Kant who said, “In order that action should be morally good, it is not enough that it conform to the moral law, but it also must be done for the sake of the law” (Kant & Abbot, 1916, p. 6). So Rajaratnam, knowing that insider trading was taboo, because it often causes damage to others, should have simply reframed from engaging in the illegal activities regardless of the circumstances, because the law existed as a source of protection. Even if for whatever reason he…

Nick Carraway was offered with insider information by Jay Gatsby and his mentor, Meyer Wolfshiem respectively in two unlinked scene. The underground society, which according to Tom Buchannan, referred as “temple of virtue” was a place where all sorts of banned activities involving renowned authorities were carried out and it was the place where Nick Carraway and Meyer Wolfshiem first met. Noticing that Nick Carraway was with Jay Gatsby, Meyer Wolfshiem mistaken Nick Carraway as one of them and…

in corporate insider in different states. A minority shareholder is someone who doesn’t own enough shares to have a controlling vote in a company. While a corporate insider might be a manager or someone that owns voting shares in a company as well as anyone who uses insider knowledge of a company in order to manipulate the market. The main question that Cioffi and Hopner try to answer in the article why do some states protect minority shareholders from rent seeking of corporate insiders. Cioffi…

trade on insider information. Darla is not employed by Cardware, and she did not steal the information, so it would be difficult to charge her with "misappropriation." There is also another test under the insider trading law. Darla did not pay anybody for the information, which also helps her case. Recent insider trading case law says that the "tipper" (person giving out confidential information) has to receive compensation for that tip. So it adds another more stringent requirement for insider…

I work for Toyon Research Corporation, a small, employee-owned company. I am also one of the two trustees for Toyon’s Employee Stock Ownership Plan (ESOP), and several years ago I was one of seven directors on our company’s board, and may decide to serve again in the future. While, Toyon is a closed corporation, it is still subject to many of the same laws governing organizations with publically traded stock. In fact, Toyon has experienced first-hand some of the difficulties big corporations…

insider’s breach necessarily requires knowledge that the insider disclosed confidential information in exchange for personal benefit.” (Id. at 449). United States v. O’Hagan established that Rule 10b-5 could be directed at deceptions whose primary harm was unjust enrichment rather than fraud that hindered efficient markets. The problem with the classical theory was that there was still questionable room on what constituted insider trading liability, which could be a non-fiduciary instance to…

related to the ImClone insider trading affair and was sentenced to prison. Even though Martha Stewart was not a member of the biotech company ImClone, I believe the charges that were proposed and set in the case are fair and justified, because Martha acted upon a tip from her broker, and then after she lied to investigators about why she sold her share of ImClone stock right before the stock price plunged. First we have to know what exactly is insider trading. Insider trading refers to “the…

Of all the most of finance crimes discussed, I consider money laundering the most Serious because the estimated amount of money laundered globally in one year is 2 - 5% of global GDP, or $800 billion - $2 trillion in current US dollars. Money laundering is the criminal act of filtering illegally obtained ("dirty") money through a series of transactions designed to make the money appear legitimate ("clean"). Throughout the years money laundering in the United States has made our banks enforce…

Fastow knew the end was near and had to realize that the United States Supreme Court would not tread lightly on this matter after he had ripped off so many people and ruined the remainder of their lives. Fastow ended up pleading guilty to fraud, insider trading, and almost 100 counts of money laundering. After taking one look into the accounting sheets of Enron, the courts needed not to be convinced that Fastow was guilty. As for Skilling’s charges, he ended up being convicted of over half of…