July 21, 2013 |
WASHINGTON - The Securities and Exchange Commission filed civil charges Friday against Steven A. Cohen, accusing the billionaire hedge-fund manager of failing to prevent insider trading at the fund he founded. Cohen founded and runs SAC Capital Advisors. The government has called the case one of the biggest insider-trading fraud cases in history. The SEC said Cohen failed to supervise two senior employees of SAC and prevent them from illegal insider trading. As a result of illegal trades by Cohen's hedge funds, the funds reaped profits and avoided losses of more than $275 million, the SEC said.
May 17, 1987 |
Thanks to Ivan F. Boesky, the dethroned king of stock speculators, "insider trading" is a household term that has come to connote stock- market shenanigans. But insider trading, in its common and legal form, refers merely to the buying and selling of stocks by people "inside" a corporation: officers, directors and shareholders who already hold more than 10 percent of the outstanding stock. Some investment experts think that closely watching the legal type of insider trading can be a profitable tip for outsiders.
March 30, 2013 |
NEW YORK - A senior portfolio manager for one of the nation's largest hedge funds was arrested Friday, accused of joining an insider-trading conspiracy that the government said made more than $6 million illegally for the investment company founded by billionaire businessman Steven A. Cohen. The arrest broadens the government's probe of trading practices at SAC Capital Advisors, which manages $15 billion. Two weeks ago, the Securities and Exchange Commission said two affiliates of SAC Capital would pay more than $614 million in what federal regulators called the largest insider-trading settlement ever.
February 7, 2016
A Bucks County lawyer was convicted Friday in federal court of insider trading that netted him more than $75,000 in profit on an insurance-company merger, prosecutors said. Herbert Sudfield, 64, of Doylestown, was working for a law firm that represented Harleysville Group, Inc. in its 2011 merger with Nationwide Mutual Insurance Company. Knowing the merger was coming, Sudfield purchased shares of Harleysville stock before the deal was publicly announced, prosecutors said. Sudfield then lied to the FBI about his prior knowledge about the deal and details about his stock purchase, prosecutors said.
November 20, 1986 |
Can insider trading be stopped? In the wake of the government's charges against Ivan F. Boesky, who was accused of reaping illegal profits in the stock market by using inside information, many in Congress think not, at least under existing laws. As a result, efforts in Washington are intensifying to create tougher penalties against using inside information that is not available to the general public. There also is discussion of devising new legislation for dealing with corporate takeover activity.
October 14, 2011 |
NEW YORK - A former billionaire described by the government as "the modern face of illegal insider trading" was sentenced Thursday to 11 years in prison, the longest insider trading sentence ever but far short of the two decades sought by prosecutors. Galleon Group founder Raj Rajaratnam also was fined $10 million and ordered to forfeit $53.8 million by U.S. District Judge Richard J. Holwell, who said he concluded that Rajaratnam made more than $50 million in profits from his illegal trades.
May 11, 2014 |
A FORMER eBay and Gannett executive pleaded guilty yesterday in federal court to insider trading. Christopher Saridakis, 45, of Greenville, Del., was a senior executive at GSI Commerce, a King of Prussia-based e-commerce company when he provided confidential information about eBay's pending acquisition of GSI to others. He faces a maximum possible sentence of 20 years in prison and a $5 million fine when he is sentenced on Sept. 19 by U.S. District Judge Stewart Dalzell, the U.S. Attorney's Office said.
November 19, 1986 |
Alone in his office, the president of Amalgamated Widget puts down the phone and smiles. He's just gotten a commitment for a contract to sell $1 million worth of advanced-design widgets. Nothing's on paper yet, and can't be discussed, but the deal looks as good as done. The president picks up the phone again, dials his broker and buys 5,000 shares of his company's stock. His purchase lifts the price of Widget shares $1 for the day. Though they know nothing about the contract, hundreds of small shareholders are just a little richer, and the movement alerts close watchers of Widget stock that something may be up. The executive, of course, has broken the law governing insider trading.
June 23, 1994 |
The chief executive of Shared Medical Systems yesterday agreed to pay $199,995 in penalties and interest to settle insider-trading charges, the Securities and Exchange Commission said. But R. James Macaleer issued a statement disputing the SEC, saying he had admitted only to a negligence charge and not to insider trading. The SEC said Macaleer admitted violating Section 17(a)(3) of the Securities Act of 1933, which covers fraud and actions that constitute fraud, even if the fraud was not deliberate.
March 19, 2002 |
At Enron Corp., the jackpots came easily and quickly: Since 1998, company executives and directors sold stock worth $1 billion. In hindsight, the massive sales of Enron stock by chief executive officer Kenneth Lay and other insiders should have raised a red flag, brightly painted with the word sell, for investors wondering about the company's future. If only it were so easy. Unfortunately, sales and purchases of company stock by corporate executives and directors do not always telegraph information clearly.