Did the executives and the board of fast-casual Mexican chain Chipotle enrich themselves by inflating the company’s stock price, overpay themselves with shares of that over-valued stock, and let the chain’s potential food-safety problems slide? That’s what some shareholders claim in a lawsuit, saying that the company also misled its investors about food-safety practices that would eventually contribute to multiple outbreaks. [More]
insider trading
Senate Passes Weakened Version Of Bill To Prevent Lawmakers From Insider Trading
By 3.22.12
It’s been a few months since we last heard much about the STOCK Act, the legislation intended to close the loophole that has allowed lawmakers (and their aides) to profit from insider trading. Well, it’s finally worked its way through the Senate, but not without losing a few teeth. [More]
Listening To Michael Douglas Could Mean Missing Out On A Reward
By 3.1.12
If money is your motivation in reporting insider trading, some experts are saying don’t go right to the FBI, even if Michael Douglas urges you to. The actor appears in a recent FBI public service announcement referencing his character from Wall Street, Gordon Gekko, targeting financial fraud. [More]
Senate Inches Closer To Ending Insider Trading By Lawmakers
By 1.31.12
Sometimes good things come out of Presidential election year grandstanding. After years of reaping the benefits of a loophole that allowed insider trading by members of the Senate and House of Representatives (and their aides), legislation to stop this behavior is closer to becoming reality. [More]
Report: Insider Trading Is Illegal Unless You're A Congressman
By 11.14.11
Thanks to a loophole in federal law, those elected to Congress are allowed to use inside information to buy and sell stock. Some allegedly take advantage of the information for personal gain. [More]
Hedge Fund Billionaire Convicted On Insider Trading Charges
By 5.12.11
The Justice Department has managed to nail a hedge fund billionaire believed to be one of the many driving forces behind the financial crisis. The billionaire, the founder of the defunct hedge fund management firm Galleon Group, was convicted on 14 counts of fraud and conspiracy. [More]
FBI Raids 3 Hedge Funds In Massive Insider Trading Probe
By 11.22.10
The FBI showed up with search warrants at the office of three different hedge funds today as part of a huge insider trading probe. Sources say it’s a prelude to the biggest insider trading bust of all time. [More]
SEC: Countrywide CEO Called Mortgages "Toxic" Three Freaking Years Ago
By 6.5.09
Today, as expected, is a crappy day for former Countrywide CEO and co-founder Angelo “Orangey Orangerton” Mozilo. The SEC is suing Mr. Mozilo along with several of his colleagues, claiming that they profited from stock sales while hiding information from investors.
Lawsuits: Countrywide Ex-CEO To Feel Wrath Of SEC
By 6.4.09
His extreme orangeness, former CEO and founder of Countrywide Home Loans Angelo Mozilo, is about to be slapped with civil fraud charges, according to the Wall Street Journal.
Wal-Mart Whistleblower Finally Has New Job (At Wal-Mart), But Says Ordeal Was Harrowing
By 10.18.07
When Chalace Lowry reported her suspicions that her boss was possibly engaged in insider trading, it set off a four-month-long ordeal where she was questioned repeatedly by various departments within the company, outed to her boss as the snitch, and—when she subsequently requested a transfer—told she had 60-90 days to find a new position on her own or get out—not the most supportive response from a company that only a few months earlier sent her to a training seminar on corporate ethics.
