Fraudulent and/or Unethical Activity in our Industry

Discussion in 'Trading' started by Zr1Trader, May 5, 2012.

  1. I am looking for most of the ways our industry conducts fraudulent and/or unethical activity. I know everyone's definition will vary.

    Some things may be legal but still unethical. Some things may be fraud and unethical.

    I will name a few of my own personal ideas of unethical/fraudulent activity to start.
    Ponzi schemes (Madoff)
    MLM Pyramid ponzi's( HLF)
    HFT quote stuffing thousands of times miles away from bid ask just to slow down data feed for everyone else.
    Insider trading by congress.
    Front running clients
    3rd party vending of failed traders.

    Just looking for opinions, comments and convo about any and all fraudulent unethical practices in YOUR eyes.
  2. The sandisk guys from Wallstreet Warriors, betting all of their clients money on one stock and telling them to cost avg every time it flopped.

    Enron, Tim sykes, Penny pump and dump newsletters.
  3. 3rd party vending with real money is fine. 3rd party vending without real money is always suspicious.

    The most unethical conduct I see for a hedge fund is whenever they completely blow out the accounts with a 70-80% loss then start another fund after sidestepping their responsibility in the role they had in the loss. That much really pisses me off, and it's unacceptable. It's like they say hey look at how good I did until my idiot trader who I hired went beyond position limits to lose more than half our fund in a single day but since I'm not responsible you can be sure we won't let that happen again.

    Then for no reason those same investors join older hedgies from those failed funds. Really pathetic!
  4. Maybe not to do with trading, but economically, I think the trophy for "unethical" goes to the Federal Reserve for devaluing the dollar which screws over the rest of the world for the United States' benefit. It's backfiring and when we lose World Reserve Currency status. Well we'll see what happens I guess.
  5. It is not, because they do that to keep the paradigm of King Dollar alive. If they didn't, countries printing money faster than we are would see their currencies appreciate from purchasing of assets and boosting government expenditures and also increasing loans.

    The Fed is a necessary component of keeping the World Bank in check also.
  6. Sort of like Brian Hunter of Amaranth