What are the greatest insider trading scandals?

Insider trading has been in existence for years. While everyone that participates knows that it is against the law, it is generally seen as part of the cost of doing business. Whether it is a little tid bit of information known about the head of a corporation or a business decision that has gone bad; if it wasn’t known by the general public, it’s considered insider trading. Those of us in the non trading world are busy taking care of our lives every day. It wasn’t until the Martha Stewart case that we really got the gist of what all of the buzz was about. Now, like the dysfunctional reality shows, many keep an eye on the news to see who will be the next millionaire dragged into the courts. While insider trading is always based on greed, the interest in those that are caught is even more popular. So what are some of the greatest insider trading scandals in the last years?

1986: David Levine, Managing Director of Drexel Burnham Lambert, turns himself into the New York City Attorney General just before he is brought up on insider trading charges regarding the takeover of Nabisco. The investigation leads to a number of Wall Street colleagues, with the ruin and bankruptcy of many.
In Feb. 2009, the Israel Securities Authorities pull in Nir Brustein. He was the CEO of Poalim Capital Markets, a large investment house. Also caught was Ofer Eisenberg, of Eisenberg Managing and Consulting. Both were under suspicion of insider trading.

Oct. 2009 brought around the exposure of one of the biggest insider trading rings involving blue-chip firms, including IBM and Intel. This scandal was regarding a conspiracy to profit on Google and other big named stocks. Ex-IBM executive Robert Moffat led a circle of ever expanding people and the Galleon Capital scandal.

The fishnet temptress is the tag put on Danielle Chiesi, a hedge fund consultant. In Jan. 2010, Chiesi found herself in the middle of one of the biggest insider trading scandals that has shaken Wall Street. Chiesi stands out amidst the dull and geekish world of suit clad men, with her low cut tops and sultry charms. The situation would be almost comical if it didn’t include these same male executives freely sharing inside information with Chiesi, and then Chiesi passing the info on.

Most recently, members of the largest banks in France and Germany were dragged into custody in Britain due to involvement in a scandalous insider trading block operation.

One of the strangest insider trading scandals was the situation involving John Marshall, a retired professor from St. John’s University in New York. While it might have seem as if he was giving lectures on Wall Street in his consulting position, he was actually caught passing insider information on a multi-billion dollar corporate takeover to another associate. The actions astounded members of Wall Street, where he was considered one of the great masters of wisdom in the financial world. Fellow teachers and former students were also aghast, because they knew that with the immense knowledge he has he could have made a private fortune years ago.

The information supplied in this article is not to be considered as medical advice and is for educational purposes only.