Agoracom Blog

Inside Trading Stupidity Is Not Limited To Penny Stocks Folks

Posted by AGORACOM at 1:38 PM on Sunday, October 18th, 2009
Photo Via Bloomberg.  Click For Article

Photo Via Bloomberg. Click For Article

When will they learn, when will they learn, when will they learn??  Perhaps, if I repeat myself, it will sink in, so here it goes:

You’re an idiot if you think you can get away with insider trading. Your crime provides a complete digital footprint for authorities to follow.

It’s Sunday morning and I’m getting ready to go out with the family.  I’ll give you the first paragraph and then you can read the entire article.

Oct. 16 (Bloomberg) — Raj Rajaratnam, the billionaire founder of Galleon Group,
and former directors at a Bear Stearns Cos. hedge fund were among six people charged
in a $20 million insider trading scheme that federal prosecutors called the biggest ever
involving hedge funds.

$20 Million  ….. as you’re reading, just remember that the biggest crooks in the financial markets reside on Wall Street, not in penny stocks.  Until Wall Street CEO’s Go To Jail And Pay Back Their Billions In Bonuses, mass faith in the markets will not be restored.

UPDATE:  Looks like an IR firm is at the center of this insider trading scheme as either the firm, or an employee (code name “Google Source“) was requesting $150,000 per quarter in order to provide insider information on Google.  Google Source‘s mistake was its marketing plan.  Selling inside information 1:1 is too slow … should have created a PPC program on Google to attract a huge number of clients. That would have attracted a whole lot less attention.


One Response to “Inside Trading Stupidity Is Not Limited To Penny Stocks Folks”

  1. JC says:

    I don’t know about you but I really like to see the feds crack down on white collar crime. It’s important that they are given harsh penalties to set a precedence and discourage this sort of activity.