WASHINGTON (AP) — The Securities and Exchange Commission says it is charging two financial advisors and three others connected to them with insider trading for more than $1.8 million in illegal profit gained from confidential information gleaned through an Alcoholics Anonymous relationship.
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Not so anonymous, now was it…
“McGee obtained the information after an executive at the Philadelphia insurer, with whom he had a relationship with through Alcoholics Anonymous, complained about pressure he was facing due to the impending acquisition. McGee bought stock of the insurer, which subsequently jumped 64 percent when the acquisition was announced.”
Wonder how they found out.
Anyone else feel like this is kind of bs that they are charging this guy?
Originally “insider trading” was about preventing someone like a CEO from going short and then declaring bankruptcy. Someone who shorts stocks prior to an announcement that drops the stock to zero. Or buys stocks from some SOB prior to FDA approval.. It’s about protecting the shareholders… not about going after someone who has more knowledge about something but isn’t even an “insider” or someone that works with the company. What if the acquisition wasn’t announced and false information was given? They certainly would not have bailed him out or charged him then. So it’s only a charge of envy…
Is this guy really a “criminal”? I don’t think so…
If anything they should charge the guy who released the confidential information without giving a disclosure that the information shouldn’t be traded on…. But that would be equally ridiculous.
Fucking legal system
Oh yeah, that’s criminal. Dudes were reps of Ameriprise so they had training and knew better.