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That's not correct. He gained $550k by selling his stock. That was money he could have cashed out at any time. By trading on insider information, he saved hims
by jjeaff 7y ago
That's not correct. He gained $550k by selling his stock. That was money he could have cashed out at any time.
By trading on insider information, he saved himself $117k in future losses (though not really because over time, I'm sure the stock will fully recover if it hasn't already). Thus the fine of $117k claws back everything that he gained due to his insider trading.
Plus, an additional $55k in fines. Plus who knows how much in lawyer fees. And then of course a criminal record that won't help with future employment prospects.
- z3c0 7y agoSure, I can admit that I was wrong about his "net profit" for his crime, because that number was eyeballed. However, the pedantry I made myself vulnerable to doesn't really change my point that he's getting a disproportionately easier sentence than a drug offender would get.
- jjeaff 7y agoI agree. But I think the solution is lighter sentencing for drug crimes, rather than higher sentencing for white collar crimes.
- alasdair_ 7y ago>By trading on insider information, he saved himself $117k in future losses Sure, we know that NOW, but at the time he could have lost enormously more. If he KNEW that was going to be his total loss it's quite possible he never would have risked it.
- jjeaff 7y ago... ya, but seems like giving a bigger punishment based on that logic would be like throwing the book at a bank robber because they "could have" gotten away with millions. Even though they were only able to get $100k before making a getaway.