Let me ask you if this is inside trading. You own a large block of stock. One day you get a phone call from someone you don"t know but they know you own a large block of stock. That person is aware of non public information and gives you the "news" (which is bad for share price) and says "ha ha you're fucked". You sell you're stock. Are you guilty of insider trading?
Yeah nice work SEC..... nice to know we have this group of clowns on our side. They still have not prosecuted a SINGLE PERSON for anything involving the trillions of dollars that went up in smoke in the subprime/CDS scam, but they are capable of finding a couple of piss ants who used a Goldman strategy to make 50k. You paying attention Captainobvious? This is how government agencies operate. They sure as hell are not looking out for the little guy.
Depends on what the strategy he "gleened" was. If he overheard that such and such ETF is going to buy 10 million shares everytime the price hits $20 and sell everytime it hits $30, then yeah...thats kind of insider trading.
imo their plan is very simple-you catch a lot of folks for amount that not really worth the trial..this will create an appearance of "the work was done"...sec do realize that there is will be an ARMY of lawyers fighting for big cases..and they know, that they may lose the fight...bottom line-they are after small,weak targets..ALWAYS..same for any gvt agency,from irs to highway patrol
but thats stupid because then he is forever prohibited from buying at 20 and selling at 30 because somebody decided to build a strategy around those prices. That makes no sense.
Nice article, Jim welcomes Professor of Economics and Law William Black to Financial Sense Newshour. He explains to Jim why no one has gone to jail four years after the beginning of the historic Credit Crisis. Professor Black believes that the level of corruption and fraud is so pervasive that very few of the guilty will ever be brought to justice. And Professor, you played a critical role during the S&L crisis in exposing congressional corruption. During that period of time, a lot of corruption was exposed; a lot of people in the financial sector went to jail, including Charles Keating. I wonder if you would contrast that to the last credit crisis, let us say from 2007 to 2009 where a lot of money was lost, a lot of things went wrong, but nobody went to jail. Instead of going to jail, they walked out instead with multi-million dollar bonuses. What was the difference, what was behind this in your opinion? cont on link.. http://www.financialsense.com/finan...-nobody-went-to-jail-during-the-credit-crisis