Thursday, December 23, 2010

The Fed's Idea of a Merry Christmas

Charges against a California investment consultant unsealed By U.S. in an insider trading investigation.


Insider trading should not, of course, be a crime.  Further, they are often simply show trials used by prosecutors to pad their resumes.

 UPDATE: The consultant is Karl Motey who  was identified earlier this week by WSJ as a cooperating witness. Starting in 2009, he taped conversations with employees and consultants of Primary Global Research, an"expert-network" firm.

He apparently plead guilty earlier this month to obtaining and distributing inside information involving Marvell Technology Group and other public companies, according to charges unsealed today in federal court in Manhattan.

Bottom line: Anyone who as much as said "Hi" to this bozo, could, and is likely to be, indicted.

Merry Christmas.

1 comment:

  1. So you honestly believe an insider should be able to trade her account, in-advance of release of inside information regarding the business, and her trading advantage will be conducive to an open, fair, and free market for trading securities of her company.

    Honestly, I can not conceive of how any right thinking human mind would knowingly invest in a market so managed. If your argument is, this is how the market operates today, then I might agree but I would not go on to assert that this should be legal.

    Trust is the basis of trading, banking, and markets in general. When trust suffers, the cost of capital rises. This is a bad thing, IMO.

    Please clarify where I have this wrong Sir.