Wednesday, October 27, 2010
Can "ordinary workers" get caught by insider trading? It doesn't always need the Web
Two blue collar employees of Florida East Coast Industries were charged with "insider trading" -- tipping off family members and trading in their company merely after seeing strangers (or maybe “strangelets”) in business suits in the railroad yards and taking special trips. Peter Lattman has a New York Times story on the incident (website url) here. The S.E.C. actually pursued the employees with a civil suit, while missing Madoff and a whole slue of “inside jobs” on wall street.
In the past, there have been cases where people have set up websites to traffic rumors and manipulate the share prices of companies they worked for.