Friday, March 02, 2007

Prosecutors crack insider-trading ring

Wow...been a long time since I've seen one of these stories pop up. Being an ex Series 7 License holder i know all about this kind of thing. To an extent all brokers have and use inside information if they have any sort of relationship with fund managers and companies. This doesn't mean that most act on any sort of inside tips they get. The majority of us were very ethical. Seeing this kind of thing just reminds me of how greedy the players in this industry are.

You can use your knowledge to make a buck here and there, but when you basically spit int he face of the SEC you are going to get your ass handed to you. Like the article says this wasn't a boiler room scam either. These are big firm stock jockies and they got busted. $15 Million in fraudulant activity isn't going to sit well with anyone. The power of greed in this industry is incredible really. The competition of brokers is very shady at times. To get the big whales some feel it is neccessary to break the law to give them an advantage. Clients willing to go along with it aren't immune to the law either. Remember MArtha Stewart? Of course you do. If she can go to jail for this kind of thing just about anyone can.

NEW YORK - Investigators have broken up what they call one of the biggest Wall Street insider-trading rings since the 1980s — a sweeping, $15 million scandal that involved power brokers at some of the nation's top financial firms and two lawyers. read more...