Friday, January 14, 2011

Politically Unconnected Amateurs Charged with Insider Trading

Despite the fact that insider trading makes markets more efficient, the Securities and Exchange Commission continues it show charges against those trading on inside information.

The SEC alleges that George H. Holley, who co-founded Home Diagnostics, provided his personal accountant Steven Dudas and his friend and business associate Phairot Iamnaita with confidential information about the company's upcoming acquisition by Nipro Corporation. Holley then gave Dudas $121,500, which Dudas and Iamnaita used to purchase Home Diagnostics stock in a joint brokerage account. After the acquisition was publicly announced, Dudas and Iamnaita tendered their shares for a profit of approximately $90,120. Dudas and Iamnaita are charged along with Holley in the SEC's complaint filed today in federal district court in Trenton, N.J.

1 comment:

  1. Don't forget about 50 Cent:

    To be honest, I am surprised that you have yet to comment on this. I heard on CNN two days ago that the S.E.C. is considering charging him for insider trading.