High ranking SAC trader arrested.

SAC Capital trader arrested
By Aaron Smith @CNNMoneyInvest March 29, 2013: 8:15 AM ET

A high-ranking trader at SAC Capital -- the embattled hedge fund run by billionaire Steven Cohen that is at the center of a federal investigation into insider trading -- was arrested Friday, according to the FBI.

Michael Steinberg, a portfolio manager at SAC Capital, was arrested following an investigation of insider trading, according to an FBI spokesman. The spokesman did not specify the charges against Steinberg, saying that there will be a formal announcement later in the day.

Steinberg was arrested at 6 a.m. at his Manhattan residence.

http://money.cnn.com/2013/03/29/investing/sac-capital-trader-arrested/index.html?hpt=hp_t2

 

I never understood the whole insider trading thing.

If I'm taking a dump at McDonalds and I hear two head honchos in the bathroom talking about rolling out the mcrib next month ...If I buy a lot of hog futures ,is that insider trading?

Who says the trade even works even if I have insider info?

These guys just pay money to settle anyway.

The sec is a crock of shit.

 

Examples of insider trading cases that have been brought by the SEC are cases against:

Corporate officers, directors, and employees who traded the corporation's securities after learning of significant, confidential corporate developments;

Friends, business associates, family members, and other "tippees" of such officers, directors, and employees, who traded the securities after receiving such information;

Employees of law, banking, brokerage and printing firms who were given such information to provide services to the corporation whose securities they traded;

Government employees who learned of such information because of their employment by the government; and

Other persons who misappropriated, and took advantage of, confidential information from their employers.

http://www.sec.gov/answers/insider.htm

 

as usual and everywhere in US law. you can grab and sue anyone under such definition.

 

Nice "wake up" call.

 

Yeah, the good old days of the robber barons, I reminiscence a lot about them too....

 

Raj sentenced to 11 years and a $93MM fine. A Jersey lawyer got 12 years.

 

No such thing as insider trading in futures.

surf

 

It is if Beeks sells you the OJ crop report.

 

We were invested in a fund that owned the transportation routes, ships, and storage facilities for a particular commodity. It was a no brainer big win--- yet we lost money on the investment. You just never know.