The plot isn’t from a Hollywood film. It involves a web of deceit and treachery, a high-stakes bet that paid off and a golden goose that laid golden eggs. Insider trading is a real story that has shaken the financial world, and brought down the reputations some of the most respected figures.
Imagine a vice-president of a pharmaceutical firm, a police chief and three friends or family members involved in a scheme to profit from confidential information. Like a game called Chinese whispers, the information is passed on by each participant, who then buys stock and options using this secret. The result? A staggering $2.3 million in ill-gotten gains.
Does this plot sound like it could be from a thriller? It is true, and it’s a story of greed, cunning, and deception that took place in the hallowed walls of Wall Street.
You can also find out more about the following: SEC Joseph Dupont – a vice-president at Alexion – is accused of being the one who started this whole chain of lies. Shawn Cronin was allegedly informed about the impending purchase by Dupont. Cronin then spread the news to Jarett Menadoza and Stanley Kaplan who, in turn passed the information on to Paul Feldman.
Imagine the excitement they must have experienced when their stock prices soared on the day the announcement of the acquisition was made. Portola stock increased by 130 percent on that day. Kaplan must have texted Feldman that it felt like winning the lottery or a golden hen laying golden eggs.
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But was it all worth it? The SEC has now filed civil penalties, disgorgement and prejudgment interest against all defendants, as well as permanent injunctive relief. They also seek to impose director and officer bars on each defendant.
What is the future for these five individuals now? Will they pay for the alleged crimes that they committed? More will be revealed by the SEC’s investigation.
This story should serve as a warning about the dangers of trading insider information. You could get burned if you play with fire. This is a game of high stakes where the rewards may be tantalizing but the consequences can be devastating.
What is the lesson to be learned? It’s simple. It’s simple. You shouldn’t risk your future and reputation. You could find yourself in serious trouble if the golden goose suddenly stops laying golden eagles.
This story of insider trading should serve as a warning to all. This story is a warning to everyone that when greed overtakes us, the results can be disastrous. Keep your eyes on the ball and don’t forget that integrity is the cornerstone for any successful business.
Remember that the golden goose may seem appealing, but the tortoise who takes it slowly and steadily will win the race. It’s the only way to achieve sustainable success.
