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Facebook Terminated Corporate Development Employee Over Insider Trading Scandal

45 points by ssclafani 16y ago

tomjen3 16y ago
Or maybe not, since the sources conflict. This is not something you write without being 100% sure.
Mystalic 16y ago
Take everything posted by TechCrunch (and all news websites) with a big grain of salt for the next 24 hours.
- gatsby 16y ago
  True, but: http://twitter.com/arrington/status/53674557814472704 http://twitter.com/arrington/status/53674557814472704
  - Mystalic 16y ago
    Arrington wants to keep the joke going. He goes to unusual lengths with his April Fools jokes. Again, take everything he says with a grain of salt for the next 24 hours.
- wheels 16y ago
  Arrington is a lawyer. These are serious allegations. I don't think he's stupid enough to float something like this as a joke.
  - ig1 16y ago
    After the Calacanis lawsuit and the Techcrunch Tablet lawsuit, I'm not entirely convinced Arrington applies his legal skills in his business dealings.
- hartror 16y ago
  But this isn't funny . . unless I am missing something!?
thesethings 16y ago
Sincere question: has anybody ever punked a journalist as an April Fools prank?
- prostoalex 16y ago
  Facebook released "Fax this photo" feature to a specific subset of user IDs. http://techcrunch.com/2009/09/10/yeah-ok-so-facebook-punkd-us/ http://techcrunch.com/2009/09/10/yeah-ok-so-facebook-punkd-u...
  - thesethings 16y ago
    Oh right, I remember that. Thanks for the link.
albahk 16y ago
Well, if the article is not an April fools joke then its a leap to claim that this is "Insider Trading". The term specifically applies to public companies and not to companies in general. This distinction is not a "footnote" in the article, it is the fact that negates the entire article.
- danielle17 16y ago
  I believe "insider trading" can also refer to a contractual violation, if Facebook had a specific policy.
- ig1 16y ago
  Insider trading cases in the US have been bought under SEC Rule 10b-5 which reads: To use or employ, in connection with the purchase or sale of any security registered on a national securities exchange or any security not so registered, or any securities-based swap agreement (as defined in section 206B of the Gramm-Leach-Bliley Act), any manipulative or deceptive device or contrivance in contravention of such rules and regulations as the Commission may prescribe as necessary or appropriate in the public interest or for the protection of investors. (source: http://www.law.cornell.edu/uscode/15/78j.html#b http://www.law.cornell.edu/uscode/15/78j.html#b ) Note in particular the line "security not so registered". Trading in private companies can be considered Insider Trading.
rumpelstiltskin 16y ago
Re: the last paragraph in the article Considering this can potentially ruin Brown's reputation, shouldn't they wait to get solid confirmation before slapping him with the 'insider trading' label?
ajaimk 16y ago
I'm gonna stick taking everything on the internet with a grain of salt today. We really do need a safe word for "real news" for the day.
Bud 16y ago
I'm really a bit confused here. If a Goldman employee did this, he'd get a $50M bonus, be knighted, and be given permanent immunity in advance by the President of the United States against all prosecution, whether related to this affair, or any others, past, present, or future. If a hedge fund manager did this, same thing. If any Republican politician did this, same thing. But somehow, if it's a tech industry employee, or (of course) anyone in the bottom 99.5% of the class structure in the US, they get fired and/or jailed.
- sgift 16y ago
  "All animals are equal, but some animals are more equal than others." - Animal Farm, George Orwell
- shareme 16y ago
  FB is still under SEC microscope hence the added insider trading second market rule as FB employee policy
- ig1 16y ago
  Have you heard of the term "libel" ? Insider trading is a criminal offence, if you're going to accuse a company of advocating it you should probably have solid evidence. If you wanted to make a general point about how you think investment banks are unethical, then use the term investment banks. Naming a real company and accusing them of illegal behaviour just to make a point isn't a good idea.
  - ericd 16y ago
    Wow, this reasonable response is getting downvoted, whereas the parent, which is basically a gibberish string of conspiracy theories is the top comment? This is a pretty clear example that the comment threads have seriously gone downhill.
  - arethuza 16y ago
    I think you are being just a bit over sensitive....

45 points by ssclafani 16y ago

tomjen3 16y ago

Or maybe not, since the sources conflict. This is not something you write without being 100% sure.

Mystalic 16y ago

Take everything posted by TechCrunch (and all news websites) with a big grain of salt for the next 24 hours.

gatsby 16y ago
True, but: http://twitter.com/arrington/status/53674557814472704 http://twitter.com/arrington/status/53674557814472704
- Mystalic 16y ago
  Arrington wants to keep the joke going. He goes to unusual lengths with his April Fools jokes. Again, take everything he says with a grain of salt for the next 24 hours.
wheels 16y ago
Arrington is a lawyer. These are serious allegations. I don't think he's stupid enough to float something like this as a joke.
- ig1 16y ago
  After the Calacanis lawsuit and the Techcrunch Tablet lawsuit, I'm not entirely convinced Arrington applies his legal skills in his business dealings.
hartror 16y ago
But this isn't funny . . unless I am missing something!?

thesethings 16y ago

Sincere question: has anybody ever punked a journalist as an April Fools prank?

prostoalex 16y ago
Facebook released "Fax this photo" feature to a specific subset of user IDs. http://techcrunch.com/2009/09/10/yeah-ok-so-facebook-punkd-us/ http://techcrunch.com/2009/09/10/yeah-ok-so-facebook-punkd-u...
- thesethings 16y ago
  Oh right, I remember that. Thanks for the link.

albahk 16y ago

Well, if the article is not an April fools joke then its a leap to claim that this is "Insider Trading". The term specifically applies to public companies and not to companies in general. This distinction is not a "footnote" in the article, it is the fact that negates the entire article.

danielle17 16y ago
I believe "insider trading" can also refer to a contractual violation, if Facebook had a specific policy.
ig1 16y ago
Insider trading cases in the US have been bought under SEC Rule 10b-5 which reads: To use or employ, in connection with the purchase or sale of any security registered on a national securities exchange or any security not so registered, or any securities-based swap agreement (as defined in section 206B of the Gramm-Leach-Bliley Act), any manipulative or deceptive device or contrivance in contravention of such rules and regulations as the Commission may prescribe as necessary or appropriate in the public interest or for the protection of investors. (source: http://www.law.cornell.edu/uscode/15/78j.html#b http://www.law.cornell.edu/uscode/15/78j.html#b ) Note in particular the line "security not so registered". Trading in private companies can be considered Insider Trading.

rumpelstiltskin 16y ago

Re: the last paragraph in the article Considering this can potentially ruin Brown's reputation, shouldn't they wait to get solid confirmation before slapping him with the 'insider trading' label?

ajaimk 16y ago

I'm gonna stick taking everything on the internet with a grain of salt today. We really do need a safe word for "real news" for the day.

Bud 16y ago

I'm really a bit confused here. If a Goldman employee did this, he'd get a $50M bonus, be knighted, and be given permanent immunity in advance by the President of the United States against all prosecution, whether related to this affair, or any others, past, present, or future. If a hedge fund manager did this, same thing. If any Republican politician did this, same thing. But somehow, if it's a tech industry employee, or (of course) anyone in the bottom 99.5% of the class structure in the US, they get fired and/or jailed.

sgift 16y ago
"All animals are equal, but some animals are more equal than others." - Animal Farm, George Orwell
shareme 16y ago
FB is still under SEC microscope hence the added insider trading second market rule as FB employee policy
ig1 16y ago
Have you heard of the term "libel" ? Insider trading is a criminal offence, if you're going to accuse a company of advocating it you should probably have solid evidence. If you wanted to make a general point about how you think investment banks are unethical, then use the term investment banks. Naming a real company and accusing them of illegal behaviour just to make a point isn't a good idea.
- ericd 16y ago
  Wow, this reasonable response is getting downvoted, whereas the parent, which is basically a gibberish string of conspiracy theories is the top comment? This is a pretty clear example that the comment threads have seriously gone downhill.
- arethuza 16y ago
  I think you are being just a bit over sensitive....