5 ms·
I think people simply don't appreciate that it's an easily caught crime. Most illegal things that one might do won't ever be caught, eg you break into someone's
by lordnacho 5y ago
I think people simply don't appreciate that it's an easily caught crime. Most illegal things that one might do won't ever be caught, eg you break into someone's house and it would take the police to bother investigating and then put enough effort into that one case. Or to stay in white collar you might forget to report some income, how's the tax man to know unless you are already in focus?
With insider trading the investigation is a DB query. It costs very little to look at all the trades for everyone around announcements and see who was acting suspiciously.
- TwoBit 5y agoAnd it's probably all automated.
- infinite8s 5y agoA lot of it is. The SEC hires data scientists to come up with these analyses (in fact I think I've seen some on whoishiring threads).
- arp242 5y agoHow do they know his wife worked for Amazon? Is this recorded? Or do you need to declare stuff like that? I don't know anything about trading; in naïve view would be that unless they have quite a bit of information about you that's not necessarily all that easily obtainable, it's not always so easy to detect?
- lordnacho 5y agoThey know everyone's trades. It's reported by all the exchanges. It's just a matter of scanning this DB and looking at the suspicious ones, which can't be that numerous. You can manually check for relationships at that point.
- jrowley 5y agoIf you looked at the timing of his trades combined with his success, that alone could be suspicious, which could lead to a quick investigation determining he was married to the insider employee.
- newobj 5y agoUhh I dunno say joint tax return with one person on an Amazon W2 and the other person reporting Amazon capital gains on their 1099B? Could it be any easier?