SEC Attorneys Probed For Insider Trading

[RamboLiberal]

Source: CBS News

CBS News has learned that two attorneys at the Securities and Exchange Commission (SEC) are under "active" criminal investigation by the FBI for trading stocks based on inside information.

Accusations against the two lawyers - a man and a woman whose names have not been released - are detailed in a report by the SEC inspector general obtained exclusively by CBS News.

The report, based on a review and analysis of "more than two years of e-mail and brokerage records," puts increased pressure on a commission that has come under fire lately for failing to detect the $60 billion Bernard L. Madoff Ponzi scheme, and turning a blind eye to the Wall Street financial crisis.

"We ought to be outraged if there is one insider trading information that’s leading to personal profit," Sen. Charles Grassley, R-Iowa, the ranking member of the Senate Finance Committee, told CBS News.


Read more: http://www.cbsnews.com/stories/2009/05/14/cbsnews_investigates/main5014672.shtml?tag=topStory;topStoryHeadline

[Revolution9]

1. what a shock....

(sarcasm)

[Joanne98]

2. Authorities probe insider trading at SEC

Source: Reuters


WASHINGTON (Reuters) - Two U.S. Securities and Exchange Commission employees are under investigation by federal criminal authorities for allegedly using insider information to trade stocks, a source familiar with the matter said on Thursday.

A report by the SEC's internal watchdog alleges that the two SEC lawyers traded in stock of a large financial services company despite being told by another SEC employee of ongoing investigations of that company, CBS News reported.

The SEC inspector general report said one SEC attorney under investigation works in the Office of the SEC's Chief Counsel and has access to a tremendous amount of nonpublic information, CBS News said.

An SEC spokesman said: "We take seriously even the suggestion that any SEC employee would engage in insider trading. We note that the inspector general report neither accuses any SEC employee of insider trading nor concludes that any such conduct took place."





Read more: http://www.reuters.com/article/ousiv/idUSTRE54E02S20090515

[Hugin]

3. Awfully vague article... Cryptic, almost.

Now, if it had been Martha Stewart, or someone equally as non-participating in the SEC/Insider Trading revolving door program... Well, her/his name would be slathered all over the front pages and news scrolls of America by now.

[depakid]

4. Color me surprised

:sarcasm:

Given what went on, the SEC must have been up to their eyeballs in corruption- and under Mary Shapiro, probably still is.

[DCKit]

5. I'll bet they were boinking too. Dirty, dirty little monkeys.

They'll walk on the insider trading charges and be convicted of teh sex.

The TaliBaptists have been waiting all year for this.

[elleng]

6. As I recall, there are (were) restrictions

on how long an employee acquiring a stock must hold it before selling. (My husband, estranged, is an SEC employee.)

[No Elephants]

7. The time period does not always prevent raking it in, though. And then, there's selling to avoid

loss. I believe Martha went away for selling to avoid or minimize a loss, but I can't swear to that offhand.

[elleng]

8. Of course the time period does not always prevent raking it in,

but its certainly a damper, either way.

[No Elephants]

9. Gotta love it. "Failed to detect" Madoff's Ponzi scheme. Some guy went into the SEC at least

twice and told the SEC exactly what Madoff was doing and how he was doing it, with data, etc. How much "detecting" was left after that? And Ponzi or pyramid type schemes are not exactly novel or sophisticated.


Yet:

"In addition, the report says that the female attorney “spent much of her work day e-mailing and searching the Internet about stocks.” It quotes her telling investigators: "It's my main hobby. It's my passion.” And: “It’s my way of keeping intellectually above what other people are doing.”




:rofl:


"Inspector General David Kotz, who uncovered the possible insider trading, declined a formal request for an interview, citing the ongoing investigation. But when we caught up with him near his office Kotz told CBS News, "The report talks about our concerns that there is no true compliance system at the SEC."

and


"Both attorneys - who deny any wrongdoing - still work at the SEC and make six-figure salaries. The investigation was triggered after the high volume of trades by the female attorney set off alarms inside the agency.

As it now stands, there’s no telling how many other employees are not reporting their trades because the SEC has no compliance system in place to monitor the trades of their employees. In fact, the two attorneys under investigation say that no one at the SEC had ever before questioned their reported securities holdings or transactions in the decades they have worked at the commission."




In general, thank Ronnie Raygun and those who admired his mentality for vitiating most of the protections put in during FDR's administration, to help prevent another crash, and the things his cousin, Teddy had put in place to protect us from monopolies (which would have also prevented enterprises from getting "too big to fail"). After all, whatever is good for business is good for America and business would never do things that hurt their own businesses. Riiiiigt.