| Topic Name: |
Insider Trading... |
| Message Name: |
I made a mistake abo |
| Date Posted: |
03/23/2000 |
| In Reply To: |
If this info is correct that the guy looked at road show books, pieced together valuable info, then he should not be charged for insider trading, unless of course in his temp position he was in position of material non-public info (materiality test). If not, the mosaic principle is all the chap did-put together useful info that turned out to be of some value. Would be no different from those who produce 100 different investment newsletters and somehow one of them contains some valuable info to investors.
Yes, you can't tell family members/friends about pending deals. That is illegal and you are certain to face the law. Recall the bizzare case of a high flyier who passed some tips to his "babe" in New Jersey and ruined his career.
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| Message: |
I made a mistake about that case. This guy was a temp for CSFB and GS, not MSDW. What this guy did was go through trash before it was shredded, stole paper from printers, and went through employees' desks. The people he tipped off knoew that the guy was working at the banks, and in some cases paid for the info. I know that temps get background checks, and sign confidentiality agreements, which at the minimum he would have violated. BTW, the people that caught him were from the Intermarket Surveillance Group.
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