Former Dell Execs Involved In Massive Insider Trading Probe 149
DMandPenfold writes "Two former Dell employees, including a former investor relations manager, were part of a $62 million record-breaking insider trading scam, involving the company's shares as well as Nvidia stock, according to the FBI. The news comes as the U.S. authorities step up their pursuit of inside traders. Two months ago, Galleon hedge fund founder Raj Rajaratnam was sentenced to 11 years in jail for his role in a scam involving AMD, IBM and 3Com stock. Yesterday, Sandeep Goyal, an employee at Dell's U.S. headquarters between 2006 and 2007 before becoming a financial analyst, was arrested. An unnamed co-conspirator in Dell's investor relations department from 2007 to 2009 is also alleged to have been part of the scam. ... Goyal allegedly made $175,000 by providing inside information about Dell to a hedge fund. He has pleaded guilty to charges of securities fraud."
Re:Free market! (Score:4, Informative)
A truly free market would solve it!
How?
I SAID A TRULY FREE MARKET WOULD SOLVE IT!
Yes, you did say that. In fact, you can sell parts of your company to anyone you want, barring monopolistic actions. Until you make a public offering. That would be the stock market. Ownership is now public, so you are responsible to the public and private trading most certainly should be fraud.
Re:And yet... (Score:5, Informative)
Oddly enough, insider trading is LEGAL for members of Congress. Ain't that just awesome?