Smithfield SEC case - blatant insider trading
One of my buddies in securities law showed this to me. Although reading SEC lawsuits is probably not your definition of time well spent, this one is worth a quick read.
http://www.sec.gov/litigation/complaints/2013/comp-pr2013-102.pdf
Begs the question, who in their right mind would make these trades so blatantly? I mean, it says the guy works at a plastics factory, so I suppose he doesn't know much about trading, but seriously? Makes a 3400% return, tries to transfer money out of the country, and doesn't expect to get caught? Look forward to seeing his defence.
Says he funded his IB account with $920,000 first and then another 2mm later... Didn't know plastic factory workers made that much. This guy is an idiot but fun to laugh at
Would be hilariousif he borrowed the money from the underground and all his money was confiscated.
court has to prove that he acquired insider knowledge, having a friend who has that kind of information isnt enough, hell every trader in the city would be jailed if that was enough.
yes its obvious he did it, but courts cant just say its obvious. Ask OJ Simpson. Would be surprised if he doesnt get most of his money in this,.
It's an emergency action. The main point is to provide evidence to freeze the account, not convict. More evidence will likely emerge. Also, insider trading convictions have been handed down without smoking gun proof.
Incidentally, there's some embarrassingly bad financial language in that document. How does one "corner the market" in options or futures? LOL.
With the information given, I would imagine that since the thai company had been trying to buy out Smithfield for some time before he even traded, couldn't it be possible that the information that Smithfield is being talked to by the Thai place about an acquisition been released somehow? I know here in the US you hear all the time that Facebook is in talks with so and so for possible acquisition but wouldn't hear about Smithfield basically because it's not Facebook.
just trying to play devils advocate here and also with not an extreme amount of knowledge on how information like this gets released.
There was never a Thai company buying SFD....
in the report there was a Thai company that tried to acquire SFD.
on reflection, the insider in question here is likely to be the thai bank/banker, not the plastics puppet.
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