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]
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]
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]
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]
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]
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]
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.
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.