insider trading

Elected Insiders: Why the STOCK Act Matters to You

Four times in five years, lawmakers have introduced the Stop Trading On Congressional Knowledge Act to bar senators and representatives from investing based on knowledge they gained in the course of their duties. Three times, the STOCK Act has died in committee. Will the fourth time be the charm?

Buffett's Blind Spot: David Sokol's Unethical History

David Sokol, once considered a likely successor to Warren Buffett as CEO of Berkshire Hathaway, resigned this week from Berkshire under a cloud of possible insider trading charges. But these recent ethical lapses are hardly the worst of Sokol's business transgressions.

With Sokol Out, Who's in Line to Succeed Buffett?

David Sokol, a top executive at Berkshire, left Warren Buffett's empire abruptly on Wednesday. Although the SEC claims not to be investigating the reasons, and he says the choice was personal, its hard not to see a connection to Berkshire's recent purchase of Lubrizol, which was a big windfall for Sokol.

Why Countrywide's Fraudster-in-Chief Isn't Going to Prison

Angelo Mozilo, the former head of Countrywide Financial, isn't going to jail. In fact, he won't even face a trial. Wondering how the most convictable CEO among the titans who brought down the financial system is getting off so easy? The answer lies in the revolving door between Wall Street and its "regulators."

SEC Charges Accuses Former Deloitte Employee of Insider Trading

The Securities and Exchange Commission accused a former employee of Deloitte Tax LLP and his wife with earning millions of dollars from insider trading. The SEC said that Arnold McClellan and his wife Annabel leaked information about at least seven confidential acquisitions by Deloitte clients to family members in London. The couple lives in San Francisco.

Authorities Probe Insider Trading at Wal-Mart's Japan Unit: Report

Authorities in Japan will investigate allegations of insider trading involving Seiyu, the Japanese unit of Wal-Mart Stores (WMT). The country%u2019s Securities and Exchange Surveillance Commission and Tokyo district prosecutors will pursue an insider trading case against the husband of a former member of the Seiyu board, Dow Jones said, citing a report in the Japanese media.

The SEC's Risky Expansion of Insider-Trading Cases

The feds appear to be trying to broaden the notion of insider trading to include the information-gathering of hedge funds as criminal activity. But this could be difficult to prove in court, because there's no statuary definition of insider trading.

FBI Makes First Arrest in SEC Insider Trading Probe

On Wednesday, the FBI arrested Don Chu, an expert on Asian markets for Primary Global Research, setting the tone for the SEC's crackdown on insider trading. Chu was charged with conspiracy to commit securities fraud and conspiracy to commit wire fraud.

Daily Blogwatch: Should Insider Trading Be Legal?

In the biggest Blogwatch ever, some of day's top stories for investors, including how the Beatles on iTunes could have huge significance for the stock market; why insider trading might be difficult to prosecute; and the best IPOs of 2010.

Wellington, Janus Eyed for Possible Insider Trading

Wellington Management has received a document request from federal regulators looking into possible insider trading on the part of money managers with the firm, Bloomberg News reported, citing a person familiar with the process. Janus Capital Group also received such a request.

Countrywide's Mozilo Settles With SEC

Countrywide Financial Corp. co-founder Angelo Mozilo, along with two others, has reached a settlement agreement with the Securities and Exchange Commission related to charges of insider trading and civil fraud.

Legal Briefing: Insider Trading in Potash Bid?

When BHP Billiton made its offer to acquire Potash Corp., two residents of Madrid, Spain, made $1.1 million by buying out-of-the-money call options ahead of the announcement, the Securities and Exchange Commission claims. The SEC is suing the investors, and has frozen $1.1 million of their assets.

Legal Briefing: Race and College Admissions

In 2003, the U.S. Supreme Court held in Grutter v. Bollinger that race could be a "plus factor" considered in school admissions. On Tuesday, the 5th Circuit Court of Appeals will hear arguments in the first case to ask precisely what that means.

Billionaire Brothers Charged With $550 Million Fraud

Billionaire brothers Samuel and Charles Wyly were charged Thursday by the SEC with orchestrating a 13-year-long securities fraud that reaped them $550 million in undisclosed gains that were hidden in a series of transactions in offshore tax havens.

High Court to Rule on Arizona's Other Immigration Law

Though the recently passed Arizona law empowering police to detain suspected illegal immigrants has gotten more attention, on Monday the U.S. Supreme Court agreed to rule on a different, but extremely important Arizona immigration law, one that punishes employers for hiring illegal immigrants.

Insider Trading Tips From a Goldman Director?

Prosecutors are looking into a Goldman Sachs director's communications with hedge fund Galleon's Raj Rajaratnam, who's on trial for insider trading. The ties revealed raise troubling questions about how widespread insider trading is.

Did Goldman Director Pass Insider Info to Galleon?

The insider trading case against Galleon hedge fund founder Raj Rajaratnam has led investigators to look closely at Rajat Gupta, a Goldman Sachs director. Prosecutors believe Gupta may have shared inside information about the investment bank with Rajaratnam during the depths of the financial crisis.

Is Insider Trading of Credit Default Swaps Illegal?

A Deutsche Bank employee on trial for insider trading is attempting an unusual defense. The inside information he allegedly shared applied to credit default swaps, which his lawyers will assert aren't regulated securities, but merely private contracts, and thus, outside the SEC's jurisdiction.