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Is insider trading a trumped-up charge? I didn't hear the internet outrage about Enron's CFO being indicted for the same charge.
by 65_196_127_226 13y ago
Is insider trading a trumped-up charge? I didn't hear the internet outrage about Enron's CFO being indicted for the same charge.
- gknoy 13y agoIf I recall right, the reason it was considered insider trading was that he had published numbers expecting a contract from the government. When he chose to stand up for principles, the contact never landed, which made those predictions false. I'd appreciate a clearer explanation of this, but last time I read about it, it really did seem like the loss of the contract was out of revenge, and that his prosecution would never have happened had he caved to the requests which he felt were unconscionable.
- tedunangst 13y agoThe problem is he dumped the stock after it became clear (to him) they weren't getting the contracts, but before he told anyone else.
- smsm42 13y agoInsider trading by itself is not a trumped up charge - probably none of the charges possible by the US Code are by itself. What makes it trumped up is the particular circumstance - the details of the case. And the details look definitely very fishy.