IBM, Intel Execs Arrested Over Insider Trading 198
An anonymous reader writes to share a report from The Register stating that executives from IBM and Intel have been arrested as a part of insider trading allegations. "According to a report from the Associated Press, six people were arrested today as part of an insider trading case, including Bob Moffat, senior vice president and general manager of IBM's Systems and Technology Group; Rajiv Goel, director of strategic investments at Intel Capital; Anil Kumar, a director at management consultancy McKinsey & Co; and Raj Rajaratnam, the founder of the $7bn Galleon Group hedge fund."
Re:Well now... (Score:4, Informative)
Probably wanted to make sure they had a solid case. If they are guilty, who else thinks these guys will get away with a lower sentence then a non-violent drug user?
Insider trading is only for board members (Score:5, Informative)
I'm afraid that insider trading is deeply, deeply frowned on by most companies, who put strong clauses in their confidentiality agreements, and at some larger companies provide "training" about how not to do it. I've attended such training several times, as part of corporate mergers, and it's striking how thee announced policy does not apply to VP's in practice: does not apply to "corporate partners": and does not apply to the people who have the most to trade with and the most to gain. It _does_ apply to the peons, the people with stock options who might want to trade them in at the right moment but whose activity might pre-announce and thus reduce the profitability of the corporate changes which are the direct knowledge of those most with the most to gain from insider trading.
Yes, I've become extremely cynical about this: I know VP's who really try to help their companies and improve their products, but I've been running into far too many since the Dotcom boom who simply studied how to make their bundle and get out with the last glowing quarter on their resume, and get out before the SEC or the market stomps their grandiose "big vision" plans into the dust.
Re:Well now... (Score:3, Informative)
The point is that's not the high end of the scale at all. It's not that uncommon to see people who get, literally, hundreds of years for white collar crime. Madoff got 150 years. Now, granted, that's mostly symbolic for a guy in his 70s, but in general financial crimes are such that a prosecutor can usually throw a whole bunch of counts of 3-5 at you to end up with some eye-popping total.
If I were doing an over/under on these guys I'd say (assuming they're guilty as charged) they each get at least five years in jail for making stock moves that had a negligible effect on the price of the stock they were trading.
Re:Well now... (Score:4, Informative)
Nope. Most people don't realize it, but financial crimes in the US are punished pretty severely.
I don't have a problem with the amount of punishment, but I'm pissed with how few get caught. If you follow the market and take a look at important announcements like rate cuts, economic numbers, earnings reports, etc., you could often (not always) see high volume trade before the announcements pre-announcing the result. Its sad that people almost never get caught, considering how often it happens.
Re:Well now... (Score:3, Informative)
Well, even young guys who get sentenced to 150 years sometimes get out in their lifetime. The point is that you haven't presented any evidence that in general white-collar criminals are treated more harshly than other criminals.
It's Double Jeopardy Stupid... (Score:2, Informative)
Re:Well now... (Score:2, Informative)
Nice, make shit up, hope it sticks.
At the beginning of presidential terms, prosecutors traditionally hand in their resignations. Every president.
And the fired prosecutors were the ones investigating public corruption.
And this one was fired to give the job to a buddy.
http://www.usatoday.com/news/washington/2007-02-06-prosecutor-rove-aide_x.htm [usatoday.com]
You're relying on people's ignorance to slide these by, to slam the Clintons, to praise Bush.
I am not ignorant, so it doesn't work on me.
Instead, I point out your lies.
Re:Well now... (Score:1, Informative)
The last administration went after the CEO's of Tyco, worldcom, enron, and several other companies for insider trading and the equivalent of embezzlement.
Praise right there, cocksucker.
You're a giant fuck stick. Glenn Beck lover. And by lover, I mean semen gobbler.
Re:Well now... (Score:2, Informative)
Stating selective facts is praise, especially since I'm the one who had to bring up the justice firings. You want to cover them up.
You call me trolling. It does not matter. The fact is, 70% of the American people are awake and think you're full of shit. You can't fool the any longer.
Your ideas are dead. Your side is dead. Conservatism is dead. Yer mom's sex life is dead. Her pussy is really dead, let me tell you.
Re:Well now... (Score:2, Informative)
I am a huge loser. I jerk off compulsively. I never denied that.
But isn't it fucking embarassing for someone like me to be laughing at you, you fucking loser?
It's like a homeless man just gave you a quarter because you needed it more than he did.
What a fucking pathetic loser you are. Vote for Palin in 2012 and tell me how that works out for ya, asshole.
Re:Well now... (Score:2, Informative)
I'm just here to point out that less than 20% of Americans identify as Republicans, mainly because they're not fooled by you losers any more.
Re:Well now... (Score:2, Informative)
GW Bush fired prosecutors for political purposes.